With decades of high-level Australian real estate experience, we have partnered early and at every stage of growth with leading Australian developers with strong track records and with billions of dollars in turnover and assets.
Opportunities exists to co-invest in selected Joint -Venture opportunities, and sharing in the development upside.
JOINT VENTURE WITH
EXPERIENCED ESTABLISHED DEVELOPERS
As a real estate investor, a joint venture can be an excellent opportunity to enhance the overall performance of your investments.
This teamwork strategy is advantageous for several reasons, as it has the ability to combine the knowledge, experience and strengths for the greater good of all investors.
If for nothing else, a joint venture will provide experience for real estate investors which may be of assistance in future endeavors.
Although typically associated with large companies and international deals, the following explains how a joint venture applies to an individual investor or group of investors.
Joint Venture: Advantages It Brings To A Real Estate Investor
Talent Sharing: For a real estate investor, far and away the biggest advantage of a joint venture is the support by a national network of top-quality developers, agents, valuers, financiers, legal advisers, property consultants and construction companies.
A joint venture can present immense opportunity to a real estate investor, but it’s up to them and their due diligence to identify the right partner.
As can be seen the average Per Sq. M rate for Sydney Commercial Suites in 2019 was over $14,000.
That's 100% capital growth in 5 years.
TRUSTED INDUSTRY EXPERTS
The term “joint venture” can mean many different things and apply to many different scenarios, but for our purposes it simply represents a collaboration of resources between investors and developers.
The opportunity exists to co-invest together with Aurient Investment Partners in commercial/industrial developments.
The advantage the developer gains is less paperwork, less red- tape and less administration. In essence, this partnership will allow Aurient and other selected investors to find and invest in deals they would not otherwise have had access to.
And in reality, the amount required for smaller commercial real estate developments is simply too small for most large real estate funding groups to get involved with. This is the "sweet spot" fro investment by individuals.
Roles: The importance of clearly defined roles within a joint venture cannot be understated. It should be made clear that the investors will only be providing part of the required capital, and not taking part in the projects or development.
Return: How much are you expecting in return from this joint venture? Like any partnership, it’s important to discuss what you expect in return from the joint venture. Answering this question before getting involved with a partner will greatly enhance your chances of success.
As a real estate investor, the benefits of a successful joint venture are second to none. To better understand the advantages it brings, the following highlights three reasons why investors should consider a joint venture:
Profit Sharing: One of the biggest advantages of a joint venture among real estate investors is sharing profits. In most cases, a joint venture allows a real estate investor to undertake investments they couldn’t afford independently.
Risk Sharing: Why assume all the risk in real estate when you can soften the blow with a partner? Risk is a reality, but a joint venture with an established team of experts can help to alleviate the uncertainty and pressure most investors face. Additionally, a joint venture can be a form of diversification for your real estate portfolio.
Aurient Founder and Managing Director Michael Bentley has over 35 years high level property experience.
The boom in the Australian real estate market is not hidden from anyone and has been the talk of the town for long. Investors from within the country and foreign locations have diversified their portfolios by putting their money into commercial properties for higher returns. From high-rise office buildings to inner suburb warehouses, commercial properties have shown an upward trend in prices over the past few years. Melbourne, Perth and Sydney have been the big gainers in the race to earn more profits by commercialising more and more land.
An important factor behind the rise of the commercial market in Australia is the low return rate on cash assets and housing plans. The returns from offices are at an all-time high in the current fiscal year with conglomerates making a beeline for state-of-the-art buildings touching the skyline and exuding opulence. The high-end properties are being rented out by blue chip companies which are shelling out millions of dollars to be spent on fancy office spaces. Foreign investments are further driving the prices up with cash-rich deals.
In fact, Australia is the second most popular place in the world for investors to establish an Asia-Pacific headquarters. Increasing investment options with the development of inner-city suburbs as property hotbeds is another appealing proposition which is attracting more capital into the industry.
The outskirts of major cities are now becoming more viable investment options such as Parramatta and Melbourne’s city fringe, which have become busier than the CBD.
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