Moscow land: why joint ventures are replacing outright sales
How land deal structures change when debt is expensive, and what works better for an owner: sell now, contribute land to a JV or wait.
Carte Capital Research · 8 min read
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Key points
When debt is expensive, developers struggle to buy land outright, and owners do not want to sell at a discount. The compromise that most often closes is a joint venture: the owner contributes the land, the developer brings expertise and a financial investor provides capital.
How it looked in our deals
In 2017 we structured the Soho & Noho JV (36,900 m²) with Capital Group, and in 2016 the Fili Park JV (17,300 m²) with Ant Yapi. On a 0.6 ha plot in central Moscow, the deal was financed through an additional share issue of the project company.
What owners should do
- Value the plot in two scenarios: a sale now and a stake in the project.
- Calculate the cost of waiting, including taxes and holding costs.
- Decide what stake and governance rights to ask for in a JV.