Sign In

Joint venture property finance FAQ

Below you will find the most frequently asked questions about financing joint venture, or multi-tenanted, property investments.

A multi-tenanted property consists of a number of tenants situated on one property. Typical examples are industrial parks and shopping centres.

Entrepreneurs often identify multi-tenanted properties, but do not have a sufficient deposit required by a commercial bank to purchase the property. BUSINESS/PARTNERS will consider partnering with such an entrepreneur on the basis of forming a joint venture and contributing with the entrepreneur to qualify for bank funding. The shareholding will be based in accordance to the equity contributed by each party.

Each party (BUSINESS/PARTNERS and the entrepreneur/s) contributes towards the equity (deposit) and a commercial bank is approached to finance the balance. The equity is normally in the format of a shareholders loan account that may be redeemed once the cash flow permits this.

Acquiring premises for investment purposes offers benefits such as long-term capital appreciation, reliable and market-related rental income and the possibility of a post-retirement income from the property.

We have a dedicated team with specialist property knowledge. The team assists in the viability analysis, negotiating a transaction, and utilises a team of specialists when necessary – often the case when a building needs to be erected.

This varies from industrial parks (where the size of the units will cater for SMEs), self-storage facilities to suburban or smaller regional shopping centres.

The entrepreneur identifies the property and approaches us with a reasonable portion of the required deposit available (entrepreneur's own contribution to the transaction). We will then use a specialist team to work with the entrepreneur on the due diligence process and put together a proposal for all parties to consider. BUSINESS/PARTNERS will then forward the proposal to a bank for first bond consideration.