Fast-track­ing project com­ple­tion

HT Estates - - FRONT PAGE -

AWhat does a de­vel­op­ment man­ager do? branded de­vel­oper en­ters into a con­tract with a lo­cal realty player to ei­ther com­plete an ex­ist­ing project or take on a new one. His work in­volves deal­ing with fi­nanciers, re­solv­ing is­sues with ex­ist­ing buy­ers and de­liv­er­ing the project on time Ben­e­fits all: A pro­fes­sional de­vel­oper is like a mer­chant banker who works on a project for a fee. His com­pen­sa­tion ranges any­thing be­tween 9% and 12% of the project’s sale pro­ceeds and re­im­burse­ment of project costs De­vel­op­ment man­age­ment vs joint de­vel­op­ment: While the for­mer in­volves a pro­fes­sional com­ing in to com­plete the project for a fee, the lat­ter in­volves both the builder and the owner of the site de­vel­op­ing the prop­erty on a joint ven­ture ba­sis Use of de­vel­op­ment agree­ments: De­vel­op­ment man­agers are brought in ei­ther to com­plete an ex­ist­ing un­fin­ished project that has been de­layed or stuck (brown­field de­vel­op­ment) or to take up an en­tirely new project with­out hav­ing to take the risk of in­vest­ing money in it Helps home­buy­ers: Home­buy­ers can choose to stay in­vested in a project or exit from it. They get an as­sur­ance that the project will be com­pleted on time and the up­per hand to ne­go­ti­ate terms and con­di­tions laid down in the builder-buyer agree­ment while sign­ing the new con­tract

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