What happened first?
An architect we work closely with put us in touch with one of their clients. The client had pieced together a plot of land in Ipswich, and alongside the architect had achieved full planning approval for 7 large plots.
The project had stalled as the client was unable to secure adequate funding for the build.
What was the deal?
We formed a 50/50 JV with the client, effectively paying half the land value upfront to the client for ‘unlocking’ the site.
We agreed to cash-roll the build, including a low finance cost.
Our in-house building company priced the works, and we agreed to instruct them with 0% margin and a minimal overheads contribution.
We took control of the day-to-day operation of the project, with the client retaining input on major decisions.
Upon sale of the properties, construction costs would first be reimbursed. Any profit made at the end of the project would be split 50/50 with the client.
How did it go?
The project has been a complete success, and the partnership worked extremely well.
Due to the equal terms of the Joint Venture, the client trusted us to minimise costs where possible whilst maximising sales values – we always have the same incentives!
If you would like to talk to our partner direct, they would be happy to do so.
