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Experts highlight opportunities, challenges in joint venture schemes

Professionals affiliated with the Nigerian Institution of Estate Surveyors and Valuers (NIESV) are advocating for enhanced joint venture developments as a strategic approach to maintaining a competitive edge, overcoming limitations, and fostering growth in the real estate market.
They highlighted the potential benefits of joint venture schemes, including cost reduction, risk-sharing, and the utilization of both human and capital resources for business development in the sector.
 
During the 2023 Mandatory Continuing Professional Development (MCPD) program titled "Opportunities and Challenges in Joint Venture and Development Leases," organized by NIESV Lagos branch, Mr. Akintola Oladejo, the lead facilitator and Chief Executive Officer of Prestigious Home Limited, discussed critical issues affecting property developments. These issues included obstacles to foreign investments, rising construction costs, lack of access to finance, high land acquisition and development costs, inadequate infrastructure, inefficient regulatory processes, and unfavorable government policies, as well as concerns about insecurity and political instability.
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Oladejo described joint ventures as collaborative business partnerships involving two or more parties in real estate projects. These partnerships provide innovative solutions to key development challenges, with each partner contributing expertise, resources, and capital in exchange for a share of the profits.
 
 
For a joint venture scheme to succeed, Oladejo emphasized the importance of clearly defined agreements specifying partners' roles and responsibilities, project timelines, funding structures, and profit distribution modalities. He highlighted the necessity of planning, negotiation, and effective management in property development joint ventures, emphasizing the crucial role of legal professionals in the process.
 
Mr. Ayo Olanrewaju Kuyebi, Chief Executive Officer of GMH Luxury Limited, outlined strategies for successful joint ventures, including due diligence, transparent agreements, independent valuation to determine construction costs, flexibility, open communication, and the inclusion of dispute resolution mechanisms.
 
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Other speakers, including Francis Okpaleke of Mark Odu & Company, Shonibare Ibidapo of Dapo Shonibare and Company, and the CEO of Caih Resources Ltd, underscored the importance of conflict resolution and legal mechanisms in joint ventures, as well as strategies for off-plan sales.
 
Chairman of the occasion and former Chairman of NIESV Lagos branch, Mr. Samuel Ukpong, emphasized the crucial role of estate surveyors and valuers in joint venture deals, urging practitioners to prioritize training for professional growth in real estate practice.
 
Gbenga Ismail, Chairman of NIESV Lagos branch, acknowledged the significance of joint ventures in the real estate market's recent growth but noted areas of concern, such as understanding the roles of landowners, builders, and investors to reduce frictions.
In conclusion, the Chairman of the MCPD Committee of the branch, Godspower Omozusi, highlighted the importance of capacity-building programs, emphasizing that training and retraining individuals and groups are critical to ensuring that real estate contributes to national economic development.
 
Source: GuardianNG

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