Joint Venture Options

Business Partners co-invests in multi tenanted property projects. This arrangement is applicable where the investor is not able to or not keen to invest the full deposit (equity) required by a commercial lending institution. Here Business Partners will consider co-investing and offer other property related services. The criteria and financing arrangements can be summarised as follows:

• The investor identify a multi tenanted property and do basic due diligence

• Business Partners investigates the proposal and do a detailed due diligence as co-investor

• Both new developments and existing properties will be considered

• A commercial lender will be invited to offer first bond finance. The balance needs to be contributed by the investors. The shareholding depends on the contribution towards the equity portion. (If the equity required is R4 million, then R2 million contribution provides 50% shareholding.)

• Business Partners manages the process (oversees the building process, legal implementation, and provides property management services, which include placement of tenants, maintenance, property administration and financial management.)

• The investor can be a passive investor or may play an active role during this process

• Regular shareholders meetings are held

• The parties may decide when to expand or sell the property in question

• Typical projects are suburban or regional shopping centres, industrial parks and in some instances office units