Joint ventures / Partnerships are a common vehicle for providing equity funding for real estate projects.

At Mr. Property, Joint Ventures are set up for development purposes which might involve, for example, the landowner, the developer, the funder and the ultimate occupier of the completed development, or a combination of these. No one scheme is always appropriate, and the advantages and disadvantages of each option should be considered carefully. Often times, taxation will be of key consideration, and specialist advice should be obtained with regard to the tax implications of the chosen scheme.

The simplest joint ventures involve the landowner and the developer. Others will involve the land owner, the developer and financier or equity investors.

Invariably, most land owners at prime locations do not have the capital or technical wherewithal to undertake real estate development on their own. Moreover, this might not be suited to their objectives due to the huge capital outlay expected in construction, lack of technical expertise, lack of development skills etc. In such cases, instead of taking disproportionate risks, it is always advisable to seek a joint venture e.g. a reputable developer or equity investor with whom the land owner can undertake the development.