One particular model of property development that SHELTERS has employed is the joint-venture model, in which SHELTERS works with a landowner to develop a property under a profit sharing, revenue sharing, or area-sharing arrangement. Under a profit-sharing arrangement, all the costs associated with the project (construction costs, interest on working capital, etc.) are debited to the project account, after which the net profit is shared between SHELTERS Properties and the landowner in a predetermined ratio.
The revenue-sharing model allows the landowner and SHELTERS to share the accruals from the sales proceeds in a predetermined ratio. An area-sharing model is one in which the constructed areas of the development are shared in a predetermined ratio.
Combining the landowner’s asset with SHELTERS’s expertise in property development is a win-win situation for both partners. Our experience has shown that this model delivers the landowner greater profits than an outright sale of the property. SHELTERS bears the financial burden of the construction and is responsible for managing and marketing the project. Additionally, landowners receive the benefits of the SHELTERS brand name and customer trust associated with the brand when selling the completed development.
SHELTERS would like to invite landowners who believe that a joint venture with SHELTERS Properties is an option to explore further. Thank you for your interest and SHELTERS looks forward to hearing from you in the near future.