Joint Ventures Explained
We believe that Joint Ventures are an equitable way of developing property. Entering a genuine Joint Venture enables land owners to share in the profit from their own opportunity, instead of simply realising an increase in land value. Read on to discover how we can make this happen for you.
What is a Joint Venture?
Simply put we use our expertise and resources to develop your land or property with you as a business partner. You contribute your land and we do everything else. Your land value is maximised and added to your share of the profit thus maximising your return.
Why consider a Joint Venture?
Mr and Mrs X inherit a property in a great location which has development potential. They do not have the knowledge or expertise to do the project themselves, and worry selling the site would undervalue its potential. The current property value is £800,000 and a developer has offered £1.1 million subject to planning.The potential uplift is £300,000. However, the developer’s profit could be as much as £800,000 on the completed development. If only Mr and Mrs X were developer’s, they could realise £1.1 million on their property!
So how can we help maximise your asset value?
By entering into a Joint Venture with Satao Group Mr and Mrs X not only receive the true market value of their land at £1.1million, but also receive a significant share in the eventual profits of the development.The return from the JV would be between a minimum of £460,000 and a maximum of £940,000. These figures are based on a real JV, but are assessed on a project by project basis.
How does it work?
The how is assessed on a case by case basis. This will depend on your personal circumstances and how much risk you are comfortable with. We then tailor a Joint Venture Agreement to your needs including consideration of you risk profile and your tax position. The profit share is determined on a case by case basis and reflects your participation in the project in terms of capital and risk.