Structure

Reasons for the landowner to form a JV

There are a number of reasons why a landowner may wish to enter into a JV in relation to a development project, such as:

1. •

   sharing risk with another party and to place specialist risk with the relevant JV party and in particular placing such risk with a developer

1. •

   the landowner wanting a greater return for the land disposal over and above a simple land receipt with overage structure — the landowner may not have the knowledge and resources to develop the land itself, but can share in the upside to a greater degree in a JV relationship because while the risks may be greater, the Profits could be higher in light of the risks taken

From a landowner's perspective, it should be mindful not to over complicate the JV structure and so expose itself to greater risk and liability — particularly if it does not have the skill set and/or resources to manage a developer and/or Investors in a JV. For example, a more