balmain + advisory + joint ventures explained
Joint ventures explained
Balmain understands the strength of joint-venture equity transactions and so offers a fast, efficient and fair range of options to clients.
Put simply, a joint venture involves a borrower who for a variety of reasons wishes to attract equity participation for their project and so may offer a share to a third party to either strengthen the overall proposal or reduce the level of equity the developer needs to commit. Typically, the third party is a developer, builder or project manager. A minimum of a 20 per cent margin on project cost is required by the investor and in return for funding the project, they receive a share of the project’s net profit in addition to their interest rate and fees.
balmain + advisory + joint ventures explained
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