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    A Innovative Joint Venture Model Under Land Pooling!: The Magarpatta Model of "Fdi" - Farmers Direct Investment!

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    emailie
    The document describes the Magarpatta model of "Farmers Direct Investment" (FDI) for large-scale real estate development. [1] The model involves farmers contributing their land totaling 700 acres to a joint development agreement (JDA) with a project company in exchange for a refundable deposit and ongoing revenue share from the development. [2] In addition to the revenue share, the farmers also receive equity in the project company, allowing them to benefit from appreciation in the overall development. [3] The first Magarpatta City project using this model was successfully developed on 430 acres, generating wealth and long-term annuity income for the farmers while also allowing many to become entrepreneurs through business opportunities

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    A Innovative Joint Venture Model Under Land Pooling!: The Magarpatta Model of "Fdi" - Farmers Direct Investment!

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    emailie
    37 views16 pages
    The document describes the Magarpatta model of "Farmers Direct Investment" (FDI) for large-scale real estate development. [1] The model involves farmers contributing their land totaling 700 acres to a joint development agreement (JDA) with a project company in exchange for a refundable deposit and ongoing revenue share from the development. [2] In addition to the revenue share, the farmers also receive equity in the project company, allowing them to benefit from appreciation in the overall development. [3] The first Magarpatta City project using this model was successfully developed on 430 acres, generating wealth and long-term annuity income for the farmers while also allowing many to become entrepreneurs through business opportunities

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    magarpatta architecture townships india pune

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    Presentation 17

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    The document describes the Magarpatta model of "Farmers Direct Investment" (FDI) for large-scale real estate development. [1] The model involves farmers contributing their land totaling 700 acres to a joint development agreement (JDA) with a project company in exchange for a refundable deposit and ongoing revenue share from the development. [2] In addition to the revenue share, the farmers also receive equity in the project company, allowing them to benefit from appreciation in the overall development. [3] The first Magarpatta City project using this model was successfully developed on 430 acres, generating wealth and long-term annuity income for the farmers while also allowing many to become entrepreneurs through business opportunities

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    37 views16 pages

    A Innovative Joint Venture Model Under Land Pooling!: The Magarpatta Model of "Fdi" - Farmers Direct Investment!

    Uploaded by

    emailie
    The document describes the Magarpatta model of "Farmers Direct Investment" (FDI) for large-scale real estate development. [1] The model involves farmers contributing their land totaling 700 acres to a joint development agreement (JDA) with a project company in exchange for a refundable deposit and ongoing revenue share from the development. [2] In addition to the revenue share, the farmers also receive equity in the project company, allowing them to benefit from appreciation in the overall development. [3] The first Magarpatta City project using this model was successfully developed on 430 acres, generating wealth and long-term annuity income for the farmers while also allowing many to become entrepreneurs through business opportunities

    Copyright:

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    of 16

    400 acres 700 acres

    THE MAGARPATTA MODEL OF FDI - FARMERS DIRECT INVESTMENT!

    A Innovative Joint Venture Model under Land Pooling!

    By

    Mr. Satish Magar CMD, Magarpatta City, Pune


    BASIC OUTLINE OF THE MODEL
    OBJECTIVE:

    To create long term wealth for the farmers from their landholdings

    To create opportunity for the farmers to turn into entrepreneurs

    To give a sense of ownership to the farmers over the development

    To create a source of long term annuity for the farmers

    To create a strong real estate franchise in order to enable development of other


    larger scale projects

    BASIC OUTLINE:

    The farmers contribute their individuals landholdings under a JDA to the


    Project SPV, for a refundable security deposit and Revenue Share

    In addition to Revenue Share, the farmers also hold equity position in Project
    SPV hence also share in the upside of the entire development.
    MAGARPATTA CITY LAND-OWNERS, NOW
    ENTREPRENEURS
    ADVANTAGES TO THE FARMERS

    Large scale development enables better realisation on the Revenue Share


    portion of the JDA.

    Realisation of Revenue Share from the first phase of the development itself,
    irrespective of which part of the land is developed first.

    Creates greater transparency over the development process sense of


    belonging and ownership.

    Equity position in the development, enables sharing in the upside and also in
    creation of long term annuity income from leased commercial assets

    Large scale development, enables creation of strong real estate franchise and
    enabling Project SPV to leverage on it to undertake other real estate projects

    Large scale development provides opportunity for farmers to turn into


    entrepreneurs
    EXPERIENCE SO FAR

    The model created a strong franchise Magarpatta City 430 acres of integrated
    Township.

    Magarpatta City created long term wealth for the farmers

    Magarpatta City, with 5 million sq ft of leased space created long term annuity for
    the farmers

    Magarpatta City enabled farmers to become entrepreneurs most of the farmers


    became contractors, building material suppliers and building machinery owners

    Due to the creation of a strong franchise, the farmers invested their share of profits
    and revenues share amounts, back with Magarpatta City, making its financial
    position much stronger.

    The strong franchise and surplus free cash flows enabled Magarpatta to start the
    development of Nanded City, on similar model, with the landowners of Nanded City
    Magarpatta owns control equity, with the rest of equity held by farmers of Nanded
    City
    MASTER PLAN OF MAGARPATTA CITY
    BENEFITS OF THE MODEL TO DEVELOPERS

    Offering equity positions to landowners enables negotiations of betters


    terms for the JDA, vis--vis a traditional JDA.

    Enables acquisitions of larger tracts of land, with minimal capital.

    Locks in the landowners mitigates the risk of landowners being litigious


    later

    No specific time lines in JDA for completion of the development, as found


    in typical JDAs.

    No specific minimum selling prices conditions, as found in typical JDAs.

    Enables raising of debt, based on mortgage of land; which in typical


    JDAs the landowners does not permit.
    WELCOME TO MAGARPATTA CITY (RESIDENTIAL)
    (IT PARK)
    ZERO GARBAGE CITY
    EXTENSIVE PLANTATION
    SPORTS AND RECREATION
    SECURITY
    ENTERTAINMENT
    BENEFITS TO RESIDENTS
    Thank You
    Visit us at www.magarpattacity.com

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