Fast track­ing projects with dma

HT Estates - - FRONT PAGE -

What is DMA? A devel­op­ment man­age­ment agree­ment is signed be­tween a builder with a track record of ex­e­cu­tion and a lo­cal de­vel­oper/ landowner to com­plete an ex­ist­ing project or take on a new one. The realty brand has to de­sign, ex­e­cute and hand over the project to the de­vel­oper/landowner DMA ver­sus JDM: A DMA will have a pro­fes­sional com­ing in to com­plete a project for a man­age­ment fee. The joint devel­op­ment man­age­ment agree­ment (JDM) in­volves both the builder and owner de­vel­op­ing the site on a rev­enue shar­ing model Who ben­e­fits from such an agree­ment? A pro­fes­sional de­vel­oper is like a mer­chant banker who has taken on a project for a fee that can range be­tween 12% to 15% of the project sale pro­ceeds Use of a DMA: A devel­op­ment man­age­ment agree­ment is signed to start a new project or to com­plete an ex­ist­ing one that has been de­layed or stuck. In the for­mer, the de­vel­oper does not have to take the risk of in­vest­ing money to buy land or bear the con­struc­tion cost How does it help home­buy­ers? They can choose to stay in­vested in a project that has been stuck for some rea­son and get an as­sur­ance that it will be com­pleted on time once a de­vel­oper with ex­e­cu­tion his­tory comes on board

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