Land Owner JVs : Case Studies
Development Site In Prime Melbourne Suburb
Other Case Studies
- Leveraged For Value
130 apartment development in Sydney
- Upfront Integrated End2End Funding
Premium 12 townhouse project in Melbourne
- Take-Out Solutions
Multi-format Shopping centre project in Eastern Melbourne
- Land Owner JVs
Development site in prime Melbourne suburb
- Builder JV arrangements
Mixed-use project (residential, hotel, commercial) in Melbourne
- Creative Structures
Land subdivision project in Brisbane
Solution Type: Land Owner JVs
- JV structure for land-owner to realise materially higher value through a risk-mitigated mechanism
- Flexible stagged release of funds
Target Customer Benefits
- Secure superior value realisation than straightforward land sale
- Participate in development / market value uplift
- Mitigated risk management through
Scenario Summary
- Development site in prime Melbourne suburb
- Land value pre-permit was $18m-$20m
Our Solution
- We structured a JV between land owner and a proven Developer
- Staggered payments - $5m upfront, $3m once the planning permit was approved, and $3m once construction started
- Pre-agreed share of development profits plus 15% p.a coupon on owned monies until final repayment
- Registered 2nd mortgage on the property, enabling adequate security
- Option to purchase 3 apartments at pre-agreed valuation price – by end of project, the values were 15% higher
- By the end of the project in 24 months, land-owner had realised c$30.5m in collective value, a superior alternative to an outright land sale at $20m
Other Case Studies
- Leveraged For Value
130 apartment development in Sydney
- Upfront Integrated End2End Funding
Premium 12 townhouse project in Melbourne
- Take-Out Solutions
Multi-format Shopping centre project in Eastern Melbourne
- Land Owner JVs
Development site in prime Melbourne suburb
- Builder JV arrangements
Mixed-use project (residential, hotel, commercial) in Melbourne
- Creative Structures