Overview
Programmatic real estate JVs can provide economic and competitive advantages for both sponsors and equity investors. Developers and operators seek reliable sources of capital to deploy quickly, while equity investors look for sustainable partnerships with experienced and reputable sponsors. Programmatic or platform real estate JVs allow the parties to invest as part of a master program instead of deal-by-deal transactions and thus maximize efficiencies in time, capital deployment, management, and expenses.
Terms unique to programmatic JVs include investment parameters, deal sharing and exclusivity, discretion, and termination of the relationship. One of the critical issues that the parties must negotiate is the pooling of economics, namely how returns will be distributed and promote paid to the sponsor, on a deal-by-deal and/or portfolio basis.
Listen as our authoritative panel of real estate practitioners walks you through current market trends concerning programmatic real estate JVs. The panel will discuss alternate structures for programmatic JVs and key JV agreement terms in an interactive format from the perspective of sponsor counsel and capital investor counsel.
Outline
- Programmatic JV structures
- Deal sharing and exclusivity
- The pooling of economics, distribution of returns, payment of promote and clawback provisions
- Governance issues
- Financing guaranties and related issues
- Default remedies and removal rights
- Deadlocks, lockouts, and exit provisions
Benefits
The panel will review these and other key issues:
- What are the typical structures used in programmatic JVs for real estate investment?
- How can the parties bridge the gap between disparate objectives with respect to deal sharing and exclusivity?
- How do the issues shift with respect to single vs. pooled investment and the corresponding distribution and clawback of promotes?
- How do competing expectations of operators and capital investors regarding governance issues, guaranties, and exit rights typically get resolved in various structures?