A JV between developer & Client

Steve Khouw

Principal

DNA GreenDesign

LEEDuser Basic Member

126 thumbs up

February 20, 2012

We have a Client about to enter a Joint-Venture with the developer. The idea is for the developer to build the building on behalf of the JV, then the JV to lease the entire building space back to the developer. I think this is a CS scenario. I just wanted to make sure our advise is correct - true or false?

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Tristan Roberts

Representative

Vermont House of Representatives

LEEDuser Expert

7780 thumbs up

Wed, 02/22/2012 - 04:19

Steve, you didn't say anything about the construction scope, which is at least half the answer to your question. What is the scope?

Steve Khouw

Principal

DNA GreenDesign

LEEDuser Basic Member

126 thumbs up

Wed, 02/22/2012 - 11:47

Tristan, construction scope is 100 percent building the whole building from the ground up, it is a new base building, nothing there right now just a plot of land. Then after building it, the JV will pay rent to the owner, the developer. Note, it is the JV (the tenant) that wants to register the LEED program not the owner (developer).

Tristan Roberts

Representative

Vermont House of Representatives

LEEDuser Expert

7780 thumbs up

Wed, 02/22/2012 - 13:38

Steve, it does sound to me like a CS project. Ideally, though, the parties could coordinate their efforts and it could be certified as a fitted-out LEED-NC project, which would have more meaning and more benefits in terms of green measures.

Steve Khouw

Principal

DNA GreenDesign

LEEDuser Basic Member

126 thumbs up

Wed, 02/22/2012 - 16:13

Agreed. I am trying to convince the developer to be the one to register and register the NC rating system so as to truly benefit from the green initiatives, however I have to debunk the green cost myth. China is not a sophisticated market, life cycle cost assessment is yet to be understood here. Thanks for the commentary.