Corporate property joint ventures
Corporate property joint ventures

The following Property practice note provides comprehensive and up to date legal information covering:

  • Corporate property joint ventures
  • Brexit impact
  • Property joint ventures
  • CRE joint venture agreement
  • Conditions to completion
  • Funding arrangements and contributions
  • Information rights
  • Restrictive covenants
  • Protection of minority shareholders
  • Deadlock
  • More...

Corporate property joint ventures

The principal corporate documents required for a corporate real estate (CRE) joint venture transaction involving the development of a property are:

  1. the joint venture agreement (JVA), and

  2. the articles of association of the joint venture company (JVC)

Additional documents that will be required are:

  1. the property sale agreement, see for eg Precedents: Contract for sale—freehold vacant possession conditional on planning incorporating the Standard Commercial Property Conditions (Third Edition) and Contract for sale—leasehold vacant possession conditional on landlord’s consent incorporating the Standard Commercial Property Conditions (Third Edition)

  2. the development funding agreement, see Practice Note: Real estate finance—development facilities—key features

  3. development management agreement, see Precedent: Development management agreement

Brexit impact

For information on the potential effect that Brexit might have on CRE corporate joint ventures and the possible implications on the drafting, negotiation and enforceability of CRE JVAs, see Practice Notes: Brexit—impact on corporate joint ventures and Brexit—drafting boilerplate clauses [Archived].

Property joint ventures

A property development joint venture allows the parties to it to:

  1. share risk and also to place specialist risk with the relevant joint venture party, eg placing such risk with a developer

  2. gain access to specialist experience and knowledge from a party with specialist market experience outside of its own normal course of business

  3. combine specialist knowledge, expertise and resources to leverage the scale of a party’s usual operations in order to achieve greater

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