Joint Ventures

A JV is a mutually beneficial agreement between two parties – a legally secure, business arrangement with a formal contract prepared by lawyers. And it’s actually more common than you might think…

At Arc Urban Developments we work with joint venture partners to bring together landowners and investors to transform underutilised sites into high-quality, profitable developments. We manage everything end-to-end – from site acquisition and feasibility through to construction and sales, ensuring risk is managed and returns are maximised.

The joint venture agreement outlines all the details – what each party will do, and what they will not be required to do. It covers all possible eventualities so that stressful decisions do not need to be made during the development project, as things arise. The JV agreement will cover the equity split upon completion of the development. Sometimes a landowner might want to live in one of the townhouses that have been built on their land. Or perhaps both parties want to sell the newly-built dwellings and take the profits. Perhaps one party wants to sell, and the other party wants to retain one of the newly-built dwellings as a long term investment, to receive rental income, enjoy the capital growth and to avoid CGT, and to use the newly created equity to borrow against to invest again!

A Facebook closed secret group will be created for each development, and all updates, pics and progress will be communicated there. We aim to keep you updated every step of the way! Transparency, integrity, honesty and trust is in our DNA.

Essentially a JV agreement needs to be a win/win for both parties. Above all else, it needs to be FAIR. We seek to make the entire JV process seamless, stress-free and enjoyable! Upon completion, we may just crack a bottle of bubbly, celebrate our win, and both parties may decide to roll into the next JV property development project together!

Generally, a Joint Venture would involve a profit split of 50/50 between you: the money partner, and with Arc Urban Developments: the working partner. This could vary based on each project and the circumstances, however the profit would never be less than 50% for the JV money partner.