We frequently come across property owners that hold property with high development potential, who in spite of the desire realise the true value of their property, do not have the expertise, money or time to commit to its cause.
Citinova offers a participation program with the property owners whereby the owner supplies the land as we the developer provide the expertise and project management faculty in maximising and delivering the potential of the Property Owners’ site.
Under the proposal, the Property Owners would enter into a Joint Venture with an independent financial entity of Citinova, whereby their property represents their contribution to the development.
A joint venture agreement highlighting roles and duties between the property owners and Citinova would be completed and subject to the terms of the agreement, the property owners as the ‘passive participants’ would receive:
- The price of their property being of equal value to the original property value contributed by the property owners at the time of entering the joint venture (market value); and
- Traditionally 50% of all development profits (profit participation) on the completion of the project.
The profit participation is dependent on the financial and legal structure adopted for the first joint venture.
Our business model fosters a program that promotes a ‘win win’ culture, therefore prior to proceeding or undertaking a project we present a case study that achieves the most profitable outcome from the property owners.
Benefits of entering into a Joint Venture program with Citinova include:
- Maximising profitability of the Property Owners land.
- No Agents Fees if dealing directly with Citinova.
- Security for the Property Owners land whether it stays in their name or is transferred into the corporate joint venture company.
- Depending on the model chosen, Citinova procures the development funding and provides all corporate guarantees for the loans without any recourse to the Property Owners.
- Expert project and management team with significant combined experience in all facets of property development as outlined under Project Management. Our team has successfully developed property for over 30 years.
- Detailed project and financial reporting to the Property Owner as a stakeholder.
- Property Owners receive a two-fold benefit by participating in the development profit share as well as realising their land.
- The Property Owner has flexible outcomes that can see them taking their profits out in cash, or property in the completed development or a combination of both. Alternatively, the finished project can be retained as a positive cashflow investment.
Citinova’s Joint Venture program undoubtedly will move towards enhancing the commercial viability of the property owners land