Real Estate Development

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Presentation transcript:

Real Estate Development Lecture 03 Developers and their partners Reading: Chapter 2 - REDPP 29 August 2011

Outline Teamwork Development partners Roles of the developer The public sector as a partner Developers and their partners

Teamwork What is a team Advantages of working in a team Need for teamwork in real estate development Need for virtual organizations >>> Mergers and joint ventures Developers and their partners

Team members Developer Financiers Public Sector Property/ asset management professionals Advisers – legal, accounts, researchers etc Production professionals Design Professionals Developers and their partners

THE DEVELOPMENT TEAM Developer Team members Followers of developer Leadership role Clarity of vision Have a good framework of development Finding the right people Managing the right people well Team members Followers of developer Leaders in their own rights Developers and their partners

DEVELOPER’S MANY ROLES Planner Promoter Negotiator Provider Borrower Investment Partner Employer Client Manager Analyst Creator Provider Developers and their partners

DEVELOPER’S MANY ROLES PUBLIC Who: Regulators, politicians, neighbors Want: Sound development USERS Who: Tenants, owner-occupants Want: Space , services at right price and right time Planner Promoter Negotiator Provider THE DEVELOPER Who: Entrepreneur, risk manager, team builder Want: Wealth, + Asset, long term impact Promoter Negotiator Borrower Investment Partner Analyst Creator Promoter Provider DEVELOPMENT TEAM Who: In-house and consultants Want: Well-paid work, useful experience, reputation, good team Employer Client Manager CAPITAL MARKETS What: Debt, Equity Want: Financial return with less risk Developers and their partners

PUBLIC SECTOR AS A PARTNER Public sector could be the developer Partners with the private sector for developments Utilities provisions Regulations Etc…. Who is the Public sector in Ghana? Lands Commission and Title Registry Government Ministries and District Assemblies Etc… Developers and their partners

PUBLIC SECTOR AS A PARTNER Regulation process involve/drives issues with Taxes, Labor Law, Property law Public Infrastructure – Roads, sewers, utilities Financial Markets – Banks, Investment banks Zoning, Building permits, etc. Public sector as an investor on projects Downtown development projects Public Area – Circle, Danquah Circle, Parks City Center projects – Car Parks Developers and their partners

PUBLIC SECTOR AS A PARTNER Overlooking public partners cost Time Money Delays and rules of the game, design, plans, etc Developers and their partners