Tips for signing Joint Venture agreements between land owners and financiers in Kenya

Joint Venture financing options are a good way of unlocking land potential in Kenya, where land value keeps rising by the day.

A few incidences have been recorded where the land owners have been left holding the shorter end of the stick after a joint venture deal.
A few land owners whom i have met have said that their lawyers have advised them that they have no case since their agreements and contracts were placed clearly in black and white , so they just shoulder the loss unto themselves. www.a4architect.com offers advisory services to land owners so that by the time they sit on the negotiating table with the financiers, they can strike a good bargain from a point of knowledge and information.

Land owners need to review the below factors to ensure a win win situation.

Total cost of project.

Land owners need to know how to itemize all construction related costs . Once this is done, the land owner can then compare the land value and any other contribution to the total cost and compare this to the amount that the financier is contributing. This will come in handy on discussions as to how to spit profits later on.

Sharing of profit.
The contribution that each partner, namely land owner and financier, put on the table should ideally be a good start off point for discussions as to profit sharing. This is also the basis of the loss sharing in the unfortunate event that the deal goes towards a loss.

Project Management.
Land owners need to be cognizant of the project management and decision making through out the project. Professionals well versed with various aspects are usually the best bet, eg property and conveyancing lawyers, land valuers, architect,s,engineers, property agents, all licensed and with at least 10 years of experience, are a sure bet towards success of the project.

Architect Francis Gichuhi kamau.
info@a4architect.com

Arch. Francis Gichuhi Kamau. (331 Posts)

Architect Francis Gichuhi . B.Arch. University of Nairobi. Registered Architect, Kenya. Member, Architectural Association of Kenya. Contacts. email info@a4architect.com. Telephone +254721410684


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