Structure the relationship around the asset and the owner
Development partnerships are not one standard contract. The useful starting point is to distinguish ownership of the land, responsibility for project leadership, provision of capital and exposure to commercial risk. When those are separated, the parties can decide whether a straightforward appointment or a more complex transaction is justified.
Possible structures to discuss with legal and tax advisers
- Development management appointment: the owner retains the asset and appoints a development principal or manager under an agreed scope, budget governance, reporting process and fee basis.
- Performance-linked remuneration: part of a management fee may depend on measurable project milestones or outcomes, with precise definitions of costs, valuation, timing, exclusions and conflicts.
- Option or conditional sale: a developer may pursue planning or conditions before acquiring a site. The contract must address premium, long-stop dates, responsibilities, exclusivity and the consequence of failure.
- Staged land disposal: consideration can be structured around defined completion or planning events, subject to suitable security and enforceable documentation.
- Joint venture or special-purpose vehicle: parties may contribute different assets, funding or capabilities and agree governance, distributions and exit rules. This carries significant legal, tax, funding and insolvency complexity.
Do not confuse project value with distributable profit
Any proposed percentage, carried interest or performance-linked payment only has meaning if the agreement states the underlying calculation. Parties need consistent definitions for land value, financing costs, development management fees, professional costs, contingency, tax, sales proceeds and reserves. No fixed equity split or guaranteed return is represented here.
Practical governance safeguards
- Agree the owner objectives, authorised budget and professional appointments before expenditure.
- Define which decisions require owner approval and which can be made within delegated thresholds.
- Establish programme milestones, reporting cadence, risk register and escalation triggers.
- Document lender rights, insurance, procurement approach, conflicts and related-party transactions.
- Specify termination rights, underperformance remedies, dispute resolution and what happens if funding or planning fails.
- Plan for completion, refinancing, letting, sale or other exit arrangements from the outset.
How MRKHD could participate
MRKHD's proposed role is principally development leadership and coordination: framing the opportunity, appointing and interfacing with specialists under agreed authority, maintaining an owner-side reporting line and helping progress decisions. It is not a commitment to supply construction capital, underwrite project losses or provide regulated legal, tax, valuation or investment advice.
Start with a structured feasibility conversation
Before discussing a particular revenue share, define the site, land title, anticipated development route, resources needed, decision-makers and the commercially credible alternatives. Legal counsel, tax advisers and specialist consultants should independently assess any arrangement before contracts are signed or a prospect is relied upon.
Explore our property owner decision framework, project strategy service and property discussion route.
Questions property owners frequently ask
Does MRKHD offer a fixed equity split?
No. Any fee or participation model would be negotiated for the specific asset and documented with independent legal, commercial and tax advice.
Will MRKHD finance construction?
Financing is not assumed. Ownership, funding responsibilities, lending requirements and capital commitments must be established for each proposal.
What should be agreed before granting exclusivity?
Scope, term, option or exclusivity premium where applicable, deliverables, long-stop date, cost responsibility, termination and treatment of planning information should be considered with a solicitor.
Important: This page provides general commercial information, not a valuation, planning opinion, legal advice, investment recommendation or offer of finance. All development routes require scheme-specific professional assessment and agreed contracts.