Joint venture partnerships have become an increasingly popular and effective model for new apartment developments, offering a win-win scenario for landowners, developers, and investors. In the rapidly evolving real estate market, particularly in cities like Sydney, these collaborations combine land, capital, and expertise to bring ambitious projects to life.

For developers like Capital Corporation, joint ventures are at the core of their business strategy.

“We have been working with landowners as a joint venture partner for over three decades,” says Jim Hunter, Director of Capital Corporation. “With that comes expertise and experience, partnering with landowners to help maximize their value and returns.”

Capital Corporation's long-standing partnerships in Sydney have transformed several high-profile projects, including the redevelopment of the Woolooware Bay Town Centre which surrounds Cronulla Shark’s Shark Park, the Kogarah Clubhouse, and the luxury apartment development at Bondi Junction, in partnership with the Bondi Junction RSL.

“We look at our partners' land holdings, assess the opportunity, and add substantial value. Whether it’s building new or redeveloping what’s already there, we always unlock the value for our partners,” says Hunter.

In this article, we explore the intricacies of a joint venture partnership, why it makes sense for landowners to collaborate with a developer like Capital Corporation, and how such partnerships differ from traditional land sale agreements.

How does a joint venture partnership work for landowners?

In a joint venture with Capital Corporation, the landowner’s sole contribution is the land itself. Once a project is agreed upon, Capital Corporation handles everything, from the planning and design phases to funding, construction, and completion.

“Once we’ve agreed in principle on a joint venture with the landowner, we manage and fund everything from there on in,” explains Hunter.

“The landowner gets to retain ownership of the land while we do what we do best - create successful communities for people to live in. At the end of the development, the landowner receives higher returns compared to a simple land sale.”

What are the benefits for landowners to undertake a joint venture?

The traditional development process usually involves a developer purchasing land outright from the landowner, who then receives a lump sum payment and has no further involvement in the project. This model works well for landowners who are eager to sell and receive immediate financial compensation.

However, for landowners who are vested in the long-term interest of their land and want to have a larger return and benefit from the development, a joint venture could be a better option.

“A joint venture provides more flexibility than the traditional model,” says Hunter. “In some cases, the landowner may choose to retain part of the new development, as was the case with the Bondi Junction RSL redevelopment. We transformed the old RSL club on the ground floor and built 80 luxury apartments above, some of which were retained by the club. We also built, and secured a tenant for, a commercial stratum that now returns a steady rental income stream for the Club.”

Why Capital Corporation is a trusted partner for landowners

Capital Corporation has been focused exclusively on joint ventures for over three decades, delivering more than $6 billion worth of new developments across Sydney. Their track record includes redeveloping some of Sydney’s most well-known areas into vibrant residential communities.

“We’ve created partnerships on both large and medium-scale projects where landowners have sought different outcomes,” says Hunter.

“Our project in Wahroonga, on the Upper North Shore involves a partnership with the Australasian Conference Association Ltd which holds a large parcel of land, Wahroonga Estate. They sought a joint venture to develop their land into something that would enhance the community and amenity on Wahroonga Estate.”

The Wahroonga Estate project is a prime example of how Capital Corporation works with landowners to create thriving communities. The first stage, The Residences at Wahroonga Estate, will feature apartments across three mid-rise buildings with private, canopy views over the Upper North Shore.

Hunter says that while Capital Corporation’s role is to handle all aspects of the development, from concept to completion, they understand the critical importance of the landowner in the process.

“Without the landowner, there is no development,” says Hunter. “The landowner is crucial to the success of the project, so we always split all returns generated from the development with our landowners equally”

Capital Corporation’s commitment to housing supply in Australia

As demand for housing continues to rise, especially in and around Sydney, Capital Corporation remains committed to identifying new joint venture opportunities with landowners.

“The supply of land, particularly in and around Sydney, is becoming tighter,” says Hunter. “But we believe that by working together with landowners, we can help unlock more housing for Australians.”