Redevelopment or Joint Development
- Redevelopment or Joint Development Agreement or Joint Venture
- Redevelopment projects constitute a major share in the real estate construction market especially in Cities like Mumbai where hardly there are any litigation free open land space left therefore the only option left for society’s is to go for redevelopment unlike the regular construction model, where it all starts with the acquisition of plot, permissions and then construction, Redevelopment in its self brings extensive challenges as a major portion of the process is people management where Harsiddhi Realtors plays a key role and acts as an Intermediator by dealing with the existing tenants and developer parallelly. The process starts with Understanding the tenants demands and concludes with arranging a good developer to cater to their needs this is a major milestone in Redevelopment Process.
At Harsiddhi we try to make this redevelopment deed a win-win situation for both tenants and developer thereby creating a benchmark in redevelopment through unsurpassed excellence and expertise in project acquisition, execution, planning and designing
Please feel free to connect with us we will be very happy to serve you on your path of creating value for your Hard-Earned Asset.
In Joint Development involvement of two parties is of uttermost importance first part being the “landowner” who contributes his land for the construction of a real estate project and secondly the “developer” who undertakes the responsibility for the development of property, obtaining approvals, launching, and marketing the project.
To start with joint development the first and foremost document required is a Joint Development agreement which should be duly registered at the office of registrar.
Registered Joint Development Agreement bounds both the landowner and the developer in an agreement for the construction of new projects.
In return for the land provided by the former, the latter agrees to provides to some provisions which Depends on Terms and conditions as agreed upon between the parties. Which could be
- some consideration,
- Percentage of sales revenue, or
- A certain percentage of the newly constructed project on the said piece of land or
- similar permutation combination from above.
A Joint Development Agreement helps to pool the resources of both the developer as well as the landowner together. After earmarking a certain portion to the landowner, the remaining area is to be sold by the developer directly. There are some significant benefits of entering into a JDA i.e.:
- Initial investment required for land procurement is saved.
- Savings in major chunk of stamp duty to be paid on purchase of land.
- Litigation Free Land so no Undue stays and Delays.
- No undue Blockage of funds to exiting members for Alternate accommodation.
- Fast-paced development of the property as working capital to be invested and necessary permissions to be obtained from Government authorities.
- Fair consideration for the landlord
A Joint Development Agreement (JDA) is beneficial for both the owner as well as the developer. It is a common procedure nowadays and a win-win situation for both the parties.
A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task i.e., to develop a real estate project. Most large projects are financed and developed as a result of real estate Joint venture.
In a joint venture (JV), each of the participants is responsible for profits, losses, and costs associated with it. However, the venture is its own entity, separate from the participants. JVs allow real estate operators (Individuals with extensive experience in managing a real estate projects) to work with real estate capital providers (Entities that can supply capital for real estate projects)
Our role in this mechanism is to introduce real estate managers to capital providers by mediating for them and leading their way to a common platform