Joint Ventures – A potential minefield?
Joint ventures, particularly in the property industry, are one of the more challenging structures to successfully negotiate. At JBS we understand the process and key for success and how to avoid challenging experiences. With the correct controls, JV’s can be an effective tool in the investment manager's toolbox.
Here are our top tips:
- “An alignment of interests” almost goes without saying, however, consideration must be given to all motivations to ensure true alignment.
- Thoroughly explore the “What if’s” – brain-storm all the possible “disaster scenarios”, who’s responsibility or risk are they?
- Access to additional funds – always allow sufficient contingency, certainly 5-10% should be anticipated. What is the framework for any additional cash required? Is it pari-passu with previous equity or is there a priority or increased return for this investment? (After all, no one likes to invest more cash than anticipated, so it’s essential that the mechanism is pre-agreed at the outset.)
- Personal guarantees – a discussion on who provides one and what happens if it’s called upon. Ensure that any personal guarantee is limited to a manageable amount for the partners.
- Exit strategy – a discussion on what happens if the market is flat and the sensible option is to hold the property until a more favourable market.
- Transparency in everything - What is the system and process for providing transparency and comfort to all stakeholders?
- Regular communication – regular reporting and update meetings agreed at the outset.
- Control. Who ultimately can make the crucial decisions when required and what is the mechanism in the event of a disagreement?
At JBS, we project manage the entire process from start to finish, including the setting of strategic commercial direction, planning permission, legal, financial, construction, and subsequent marketing of the new properties.
Read more here https://jbs.limited/joint-ventures.
We are delighted to announce the acquisition of "85 West Street", a prime site in the heart of Farnham!
We are delighted to announce the completion and sale of “The Lodge” and “The Coach House” at our central Farnham Bishops Table development.
We are delighted to announce the acquisition of the former “Swain and Jones” site, located in the heart of Farnham. This former landmark building is set to be meticulously transformed into 23 modern apartments, offering a superb combination of location and contemporary living. Planning permission has been granted, with construction set to commence early in 2025.
We are excited to announce our latest upcoming project at the historic former NatWest Bank property, located in the heart of Farnham on West Street. This prestigious grade 2 listed building is planned to be meticulously transformed into a mix of commercial space, townhouses and apartments, offering a unique combination of heritage and modern living, subject to local authority approval.
Announcing the Sale of Swallows House and Kingfisher House We are thrilled to announce the sale of two exceptional detached properties: Swallows House and Kingfisher House, nestled in the desirable Roundbridge Park area of Woking adjacent to Hoebridge Golf Centre. These characterful homes back onto serene open fields and are perfect for dog walkers and outdoor enthusiasts. The properties are designed to offer a luxurious living experience with elegant interiors, modern amenities, and spacious living areas. For golf enthusiasts, the Hoebridge Golf Club is just a stone’s throw away, offering high-quality facilities and lush greens. This prime location provides easy access to the amenities of Woking with its excellent travel links, shopping and restaurants , making it an ideal choice for those who cherish a rural location but with ease of access to town life. We extend our heartfelt congratulations to the new homeowners and look forward to seeing these properties and their occupants thrive as they become part of the local community.
We are delighted to announce the successful sale of two exceptional, semi-detached properties: Swallows House and Kingfisher House, both located on Chessington Road in Epsom.
These neighboring properties back onto Hook Road Arena, a vast open field perfect for dog walkers and outdoor enthusiasts. The properties are designed to offer a luxurious living experience with their elegant interiors, modern amenities, and spacious living areas.
Swallows House and Kingfisher House
Situated in the heart of Epsom, these semi-detached homes provide the perfect blend of contemporary design and historical charm. Each property features beautifully landscaped gardens, state-of-the-art kitchens, and exquisite finishes throughout. Their prime location offers easy access to local shops, restaurants, and cultural attractions, making them an ideal choice for those seeking a vibrant community atmosphere.
We congratulate the new homeowners and are excited to see these properties continue to bring joy and comfort to their resident
The Problem: We encountered a challenging issue at one of our semi-rural sites in the southeast.
Meet Nemo, a falcon who is a Scandinavian/Desert Falcon and was looking more than a little crestfallen when we discovered him outside Hoebridge House where he had decided to join the plethora of wildlife residents in and around Roundbridge Park. (He had probably just heard than we had gone “under offer” and his owner had missed out!) He had a little radio pack (battery flat) on his back, a ring and a leash, so the site team quickly realised that there was an owner somewhere that was desperately missing him! With the aid of the RSPB and the The Independent Bird Registry , we met Nemo's owner, Tel-fyn, who was delighted to be reunited with his feathered friend. We are delighted to have been part of reuniting Telfyn and Nemo. If you’re like Nemo, with a keen eye for a great location, then make sure you check out Barnaby House , our next beautiful home on the Roundbridge Park Estate.
We are delighted to announce that we have received full planning permission for two new semi-detached homes on Chessington Road, in West Ewell, near Epsom. With rear views over the adjacent Green Belt, this is another build which acts as a bridge between town and country. It is only a 33-minute journey from Ewell West to London Waterloo and our site is a mere 10-minute walk from the station. Epsom is a very British market town, which sits between the busy city and the beautiful rural hills, making it a very desirable location. The market town has multiple shops, restaurants and bars offering plenty to do for adults and children. Epsom is probably best known for the world famous “Epsom Derby”, however it also has a wealth of other activities to offer, such as Horton Country Park nature reserve, the RAC club, golf courses, cinemas, galleries, museums, children farms and entertainment together with outstanding local schools as rated by Ofsted. We are gearing up to kick off the New Year with construction starting for the project in January 2022, ready for completion in September 2022. The new builds will enhance and complement the local character and be of high quality, creating a safe environment that enhances the public realm and positively contributes to the townscape. Materials will be red stock bricks and slate roof tiles with Portland Stone detailing to the windows, all constructed to our usual high standards. More info coming soon so watch this space!
Most developers are probably aware of the pitfalls of covenants and the unwelcome restrictions that they can place on our development plans. Receiving a “clean title” report on a preliminary check is always a great feeling. However, sometimes restrictive covenants can be concealed and not immediately apparent from the existing deeds, as we learnt to our cost on one project. The site in question appeared, on the surface, free from any major issues. (We were planning to demolish the existing 1950’s house of around 1500 sq ft and replace with a 5000 sq ft luxury house). The road was situated on a leafy private estate and had been carved out from the gardens of a larger residence which had retained one covenant requiring their consent to any proposals. This was easily gleaned from an online check of the title deeds. We contacted the current occupiers of the original house and were pleased that they were supportive of our plans, and readily consented to provide approval. Heads of terms were then agreed and we moved forward with instructing solicitors and furthering the due diligence process. We then discovered a major obstacle; the covenant applied to the entire land of the original house, not just its present day reduced site curtilage. This meant that all of the properties in the road (13 in total), were beneficiaries of the same original covenant even though it was not mentioned on the actual title deeds. Suddenly consent was now required from another 12 houses for our project to continue without potential future injunctions. Needless to say, this created a major set back and required immense diplomacy to negotiate a way forward, which ultimately we achieved! The lesson learnt here is to always look at a covenant from the point of view of the day it was applied.
