The power of joint ventures

As the old adage goes, two heads are better than one.

When two or more people work together, more ideas are shared, more hands do the work, so most of the time, work progresses with greater speed and precision. The same can be true for real estate, where synergies can pave the way for projects that are nothing short of exemplary.

Today, let us explore the benefits brought about by joint ventures in building. You’ll be surprised how several built marvels have been brought about by teamwork, even by rival companies.

Combined expertise

More often than not, design firms and developers establish their expertise in particular styles or building typologies. When two or more companies decide to work together on one project, you can expect the skills and know-how of all those involved to shine through in the end result.

One significant example of this type of collaboration is demonstrated by the various structures built for the Beijing Olympics in 2008.

A collaborative effort between the Swiss firm Herzog & de Meuron and Chinese architect Li Xinggang, these structures reflect the former’s mastery of innovative materials and the latter’s research-driven style.
The foreign and local designers collaborated effectively to deliver sports facilities that meet the standards of the world’s most elite athletes and reflect the cultural influences of the immediate environment.

Shared resources

Besides sharing talent, joint ventures also allow partner companies to pool together their resources such as manpower, finances, and equipment. This allows projects to be completed at a faster rate or in a more economical way.

One such joint venture that benefits from shared resources are those that involve government entities and private companies.

To illustrate, Lithuania is set to feature new sustainable offices and residences through collaborative efforts. The partnership will occur between the European Bank for Reconstruction and Development (EBRD) and Releven, one of the country’s most prominent developers.

EBRD has committed to invest up to €50 million to allow Releven to build energy-efficient buildings in the city of Vilnius. This joint venture is poised to transform underutilized areas in the city into more productive, vibrant places.

Larger opportunities

With combined resources and talents, joint ventures allow smaller companies to tackle large-scale projects that they normally wouldn’t be able to handle alone. This enables them to further hone their skills to take on more complex designs in the future, thus propelling the growth of the companies involved at a fast rate.

An ongoing UK mass housing project illustrates well the advantage of joint ventures in expanded opportunities.

Legal & General (L&G), a UK financial services provider, has partnered with the Dutch pension firm PGGM to bring thousands of rental homes to the market. First launched in 2016, the venture has helped deliver 10,000 rental homes as of this writing. This not only helps the two companies expand their operations, but also benefits locals as more rentable homes are made available to the growing population of the country.

Localized approach

Joint ventures also allow foreign designers to collaborate with local counterparts. Fresh ideas in the real estate market are introduced, all while recognizing and preserving local context.

An upcoming structure in Albania demonstrates the ingenuity that can be brought about by international collaborations.

The Portuguese architectural firm OODA and its local counterpart Artech have developed the Hora Vertikale, a residential tower that shall be flanked by a park and amenity structures.
Featuring distinct stacks of cubes inspired by local elements, the project is designed to become an eye-catching landmark in the city of Tirana. It is poised to provide a unique interpretation of the city’s character through fresh eyes.

Innovative landmarks

In the Philippines, joint ventures are certainly not new, but many are surprised at the partnerships that are behind some of the most successful projects in the metro.

One such unique collaboration has been struck between SM Residences and Federal Land Inc. They have joined forces to bring together The Estate Makati, a mixed-use vertical community that pioneers the local use of double-slab technology. The project also brings in the expertise of British architectural firm Foster + Partners to create a context-driven approach in its design.
Providing future homeowners greater flexibility in the layouts of their units, The Estate Makati is set to deliver column-free and partition less units–a first in the Philippine market. It’s an exciting development poised to transform the landscape of Philippine high rise structures in the near future.

Collaborative measures toward success

Overall, joint ventures bring about numerous benefits, especially in real estate. While there are challenges in bringing different mindsets together, successful teamwork paves the way toward new approaches and exciting opportunities.

Joint ventures just might be the key to unlocking the Philippines’ maximum potential in urban development. When companies of varying expertise work together, so much can be achieved in the name of nation-building and joint progress.

Let us hope that more companies will become more open to work together to help us achieve more in this country.