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Joint Venture in houses construction
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justKiwi
#1 Posted : Monday, February 24, 2014 11:40:41 AM
Rank: New-farer

Joined: 8/25/2012
Posts: 32
What are the pros and cons of joint venture in estate development if one gives land (e.g in Athi-River) and the financier build the houses.
-The Land is good for residential houses
-Current price per 50x100 plot is Ksh. 1.5M
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a4architect.com
#2 Posted : Monday, February 24, 2014 11:55:51 AM
Rank: Veteran

Joined: 1/4/2010
Posts: 1,668
Location: nairobi
Pros are there is less headache in dealing with consultants, banks, sales etc.
Cons are that there is less profit since you have to share

http://www.a4architect.c...ed-communities-in-kenya/
As Iron Sharpens Iron, So one Man Sharpens Another.
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MaichBlack
#3 Posted : Monday, February 24, 2014 2:43:11 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,910
a4architect.com wrote:
Pros are there is less headache in dealing with consultants, banks, sales etc.
Cons are that there is less profit since you have to share

http://www.a4architect.com/2013/01/23/joint-venture-partnerships-for-creation-of-gated-communities-in-kenya/

I actually wanted to start "this" thread today. @a4architect.com and other wazuans, please advice on products available on this at Housing Finance etal., the interest rates, duration of payment, terms and conditions - design, running of the building, setting and collection of rent etc. etc.

If there is anyone who has got into such an arrangement, it would be great to hear your personal experience!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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a4architect.com
#4 Posted : Tuesday, February 25, 2014 10:34:40 AM
Rank: Veteran

Joined: 1/4/2010
Posts: 1,668
Location: nairobi
@maichblack, shelter afrique bank has options for joint venture financing. I have not seen a Housing Finance joint venture project.
The Runda paradise project is funded by housing finance on a shelter afrique bank joint venture.

http://rundaparadise.kbo.co.ke/
As Iron Sharpens Iron, So one Man Sharpens Another.
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Pirate
#5 Posted : Tuesday, February 25, 2014 11:45:29 AM
Rank: Member

Joined: 4/4/2007
Posts: 91
I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though
Knowledge is power , but action gets things done ...
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a4architect.com
#6 Posted : Tuesday, February 25, 2014 12:04:31 PM
Rank: Veteran

Joined: 1/4/2010
Posts: 1,668
Location: nairobi
Other options such as crowd funding , as being done in the hotel project here, will become common.

http://www.a4architect.c...ng-the-southern-bypass/

REITS will also begin to fill the void created by huge bank interest rates to finance.
As Iron Sharpens Iron, So one Man Sharpens Another.
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justKiwi
#7 Posted : Tuesday, February 25, 2014 5:08:23 PM
Rank: New-farer

Joined: 8/25/2012
Posts: 32
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Milimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


What would you make/loose (if you go joint way)above selling the plots.Assuming;
1.The plots would cost 2m. each x 2 = 4m
2. How much approximately would be your share in a joint case.
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the deal
#8 Posted : Tuesday, February 25, 2014 7:33:14 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


Hi Pirate...I'm willing to work with you....

Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.

Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital
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PKoli
#9 Posted : Tuesday, February 25, 2014 10:20:08 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
the deal wrote:
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


Hi Pirate...I'm willing to work with you....

Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.

Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital

@the deal,

will you be willing for a similar venture in Lamu. We are looking at putting up a logistics park next to the promosed Lamu port, and apartments in a nearby residential area. We are looking for JV.
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the deal
#10 Posted : Wednesday, February 26, 2014 8:23:08 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
PKoli wrote:
the deal wrote:
Pirate wrote:
I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .

In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.

My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though


Hi Pirate...I'm willing to work with you....

Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.

Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital

@the deal,

will you be willing for a similar venture in Lamu. We are looking at putting up a logistics park next to the promosed Lamu port, and apartments in a nearby residential area. We are looking for JV.

@Pkoli thats an interesting project...my focus at the moment is rental apartments or commercial developments in Nairobi, Kiambu and Kajiado counties...Regards.
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