Real Estate

Joint Ventures

A joint venture with Arissan Realty is a strategic alliance between the land owner(s) or entities to engage in a specific project or undertaking jointly.

There are many good business reasons to participate in a Joint Venture with Arissan Realty. Since you have the land, and we have the resources, we can combine our strength to jointly develop and promote the property which would yield much larger earnings than it would otherwise. It may also allow you to stay in the same area where your memories are attached.

Advantages of Joint Venture with Arissan

1. Many old buildings can be transformed into lucrative investments by new construction
2. Outright sale of ancestral property may not be possible due to sentimental value attached to it. Hence, by entering into JV with us, you would not only gain from your ancestral property but also enjoy your sweet memories.
3. Sale of old property has very high capital gain tax. By developing jointly you would not only avoid the same but also get benefit out of it.
4. Purchase of new property from the proceeds of sale of the old one is subject to high stamp duty.
5. We help negotiate with tenants so that your property can be free and full benefit can be taken from it
6. We are able to work with all kinds of people and ring about a mutual understanding to work towards a better future.

FAQ’s about Joint Ventures

1. In my property, my area is insufficient and the rest is taken by tenants. What can be done?

   In case FAR is not utilized fully, a new building can be constructed and you can negotiate a new flat for your family in the property from the developer.

2. If there is no residual FSI what can I do? 

   You can exchange your existing property with a new apartment from your developer. You can also save the capital gains tax and the stamp duty if the developer agrees to pay the same for you.

3. I can wait for my land to appreciate by holding it as an investment. What benefit do I get from handing it over to a developer?

   Holding a land for appreciation may not be such a good idea as the appreciation may not happen in your desired time period. In this case its better to enter into JV with a developer and construct a building for rent/lease. Also, loan is easily available against a building especially one from which you are earning regular rent. Also, you can invest the money into another property wherein the rent earned is higher than the one being paid on borrowed funds. This is a much better and surer way to earn from land.

4. Can’t I develop the property myself instead of giving to a developer?

   Development of property is not an easy matter. It requires lot of resources, manpower, selling capabilities and investment etc. You also need to have good brand equity to sell the product at good prices. Most existing developers already have a team in place to do so. Also, it is a lot less hassle to simply enter into a JV and leave the rest of the burden on people who are experts in doing this kind of work.

Click here to apply for a Real Estate Joint Venture with Arissan.