About Jv / Joint Venture
A Joint Venture / JV Agreements can happen when the land owner wishes to develop the land via a partnership with a developer. The key aspect of this model is that the land owner contributes his land and the developer undertakes the responsibility of obtaining approvals, property development, launching and marketing the project with his financial resource. The land owner expects much higher consideration in return for land given up for development to the builder. Normally, consideration is discharged in the form of upfront payment, sharing of gross revenue, sharing of constructed area or a combination of all three.
A Joint-Venture (JV) can work in a couple of ways
- 50–50% ratio - Wherein investment and profit sharing is equally divided.
- 50% of the total saleable area : This is generally provided to the land owner, wherein the developer pays nothing for land, but the investment is entirely owned by him. In turn, the developer offers 50% of the total inventory to the land owner.
- Premium & Inventory Sharing: The developer pays a premium to the land owner (not the total value of the land, just some premium) plus a share in inventory, say around 40% or 50%
- 60–40% : In this scenario, the land owner wants to get associated with a brand in the construction industry and hence, is OK to offer his land for free. In turn, the owner gets to learn the know-how of the construction industry, gets a brand for his project plus a 40% stake in the entire inventory.
How we can help?
Dhamu And Company is a platform where Landlord can meet good, reputed & experienced builders/developers to get best proposal for their Land/property Joint Development
Landlords / Property Owner
- Suggest best Joint Venture proposal for developement of your land / property
- Help them in comparing the right developer / builder based on their successful Joint Ventures in past and current offerings
Builder / Developer
- Provides Good Land Deals at prime location available for Joint Ventures