The conventional way of financing property development entangles those involved in a web of debt and conflicting business interests. A new way of organising developments promises better buildings, more affordable rents and a stake in the outcome for everyone. This week we are featuring two articles from Fleeing Vesuvius which describe this new approach, which is known as ‘equity partnership’. Such partnerships provide an alternative way of becoming a property owner and gaining a voice in the management of the development in which one lives. They should also be very stable and secure investments for pension funds.
Chris Cook describes how equity partnerships would be structured in such a way as to ensure that everyone involved, including landowners, developers, tenants, local councils and other stakeholders, would have their interests aligned. This contrasts with the current system which tends to pit them against each other. James Pike gives examples of how such partnerships could work to rescue building projects hit by the downturn in Ireland. His article includes a July 2011 update.
Featured images: Windows. Author: Linder6580. Source: http://www.sxc.hu/photo/1334746