Sky high land prices, uncertain titles and apparent require to save cash are forcing some property companies to do combined growth deals with land lords rather than indulge money in buying and holding land at exclusive rates. Some famous, Bangalore-based developers, such as Nitesh Estates, Prestige, Puravankara, Brigade and others, Mumbai-based Godrej Properties are accepting this way to enlarge properties, alert of the eager require saving cash in a market that is becoming increasingly tight-fisted for property firms. “Builders no longer desire put cash upfront and invest inland. The JV works both for builders as well as landlords,” supposed Amit Mookim, director, transaction advisory service (real estate), KPMG. Under the collection being discussed by some firms, land lords join up with builders through a special purpose vehicle (SPV). The land lords come on board as an equity partner in lieu of the land he sets on the table. When the project provides returns, the land owner acquires a fixed percentage of the revenue in part to his equity holdings.
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Realty companies combination hands with land and landlords to cut expenses
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