Creative and innovative ways of developing and managing your real estate portfolio

Real estate owners and developers in the Philippines may take a look at and consider co-development agreements as an efficient and creative way of developing and managing their land bank, even as such agreements also point to inexhaustible sources of funds (both local and foreign), and without risking the potential loss of the property from their hands. Funding, operation and control of businesses may be amply addressed by this kind of arrangement. Excerpts:

MEMORANDUM OF AGREEMENT

FOR CO-DEVELOPMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement for Co-Development made and entered into by and between: 

__________________________ (hereinafter referred to as “____________”), a corporation duly organized and existing under and by virtue of the laws of the Republic of Philippines, with principal place of business located at _______________________, Philippines, represented herein by its President __________________, of legal age, Filipino citizen, married;   

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__________________________ (hereinafter referred to as “____________”), of legal age, ________________ citizen, ________________ , with business address at _________________________________________________________;

WITNESSETH, That:

           

Whereas, _________________, by virtue of the Lease Agreement (“Lease”) it entered into with ___________________ (“___________”), has leasehold rights over a _________-hectare parcel of land located at ___________________________, said property identified  under the Lease and is known as ______________________;

            Whereas, ____________ is obliged to develop the _____________ pursuant to its commitment under the Lease;

            Whereas, _________________________ having the necessary capability and the required funds, offered to develop and/or finance the development of a portion of _________________, which offer ___________has accepted;

            NOW THEREFORE, for and in consideration of the covenants and stipulations, terms and conditions herein contained, the parties have agreed as follows:

1.      ________________________ , for a minimum budget of Five Million Pesos (Php5,000,000.00), shall cause the development and finance the construction of _______________, fully furnished, complete with landscaping, pathways, private fences, water system (septic tanks and other applicable accessories), electrical facilities, which will have a separate entrance to ___________ area (hereinafter referred to as the “Project.”) The specifications are as follows:

 xxx

The units and related facilities and amenities shall be built in accordance with the drawings, plans and specifications submitted by ____________________ to _________ which shall approve the same and have the right of inspection and visitation anytime during the construction.

2.      ___________ shall allow _______________________  to take actual physical possession of a _____________-square meter (_____-sq.m.) portion of _______________, solely for purposes of construction. The sketch map of its location within _____________ shall be provided by ____________.

3.      ____________________ shall construct those enumerated in par. 2, i.e., the Project, in accordance with the terms and conditions set forth under the Lease, and with the laws, ordinances, rules and regulations of the City pertinent to building of structures.

4.      ________________, at __________________ ‘s expense, shall secure all the necessary clearances, approval and/or permits from the City, the power, water and telecommunication supplies from _________________________, respectively.

  

5. ____________________ binds itself to finish the construction within _____ days, counted from the date of signing of this Agreement, xxx