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 Joint Venture with Developer, How much should landowner get

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kochin
post Jun 24 2015, 09:37 AM

I just hope I do!
********
All Stars
10,314 posts

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From: Malaysia
QUOTE(jason1986 @ Jun 24 2015, 09:28 AM)
Dear all,

Wondering if any of you have experience with JV with developer.

Total GDV breakdown as follows:-

3 corner terrace - 400k per unit = 1.2mil

66 intermediate terrace - 350k per unit = 23.1mil

18 semi d - 500k per unit = 9mil

Total GDV = 33.3 mil

Dev propose that landowner gets 6 semi d, 20 terrace, 2 will be corner. About 10.1mil in value.
*
6 SD = 6xRM500k = RM3mil
18T + 2C = 18xRM350k + 2xRM400k = RM6.3mil + RM0.8mil = RM7.1mil
Total = RM10.1mil

RM10.1mil/RM33.3mil = 30.6%
damn good deal wei!
normally land owners gets approx 15%-30% dependent on the land, and its status and its zoning and its restriction, etc.

but be careful about treatment of taxes!
kochin
post Jun 24 2015, 11:24 AM

I just hope I do!
********
All Stars
10,314 posts

Joined: Dec 2009
From: Malaysia
QUOTE(peri peri @ Jun 24 2015, 09:46 AM)
you left out one important thing. Land owner will have to absorb all input tax from construction and any fees involved.

Custom only recognized the lawful and rightful of this JV owner which is the land owner not developer.

Nowaday JV is unlike previous. cannot goyang kaki and wait to harvest.
*
you are absolutely spot on hence my closing statement that the landowner better do proper due diligence on the tax structure of the deal.
new JV structures butt hurt the landowner big time!

best to engage an experienced tax agent to structure the deal properly.

on paper, the deal is attractive.
but looking at the cost of the development, suspect it is not a prime area.
hence i would rather pegged it to % GDV rather than physical units.
kochin
post Jun 24 2015, 02:13 PM

I just hope I do!
********
All Stars
10,314 posts

Joined: Dec 2009
From: Malaysia
QUOTE(peri peri @ Jun 24 2015, 11:57 AM)
thats true kochin kor. even my melaka JV project also last minute pull off due to this taxation matter.

market is bad, we just cant simply increase the selling price to recover the super premium easy money 6% to government.

CASH is king nowaday. Get the cash convert to USD and SG.
*
talk about tough time, peri kor, your company recruiting bor?
fat cat looking for job. cry.gif
let me follow you cari makan, can?
kochin
post Jun 25 2015, 09:13 AM

I just hope I do!
********
All Stars
10,314 posts

Joined: Dec 2009
From: Malaysia
QUOTE(peri peri @ Jun 24 2015, 05:22 PM)
my boss also tighten up cash flow. luckily a very penny wise boss, i believe can maintain our wages for next 2 years even without project running.

i also looking for jobs now. Eco world and law development is recruiting
*
EW no hiew fat cat.
apa itu law development.
kochin
post Jun 25 2015, 12:27 PM

I just hope I do!
********
All Stars
10,314 posts

Joined: Dec 2009
From: Malaysia
QUOTE(peri peri @ Jun 25 2015, 10:03 AM)
Law development sdn bhd or aka TS Law Holding @ kuchai lama, got few key vacancy.

They are planning something big at prime land.
*
you lead, i follow.
ada kang tao, just pm me lor.
serious punya. not play play icon_idea.gif
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