How Do I Get Paid in a Joint Venture (JV) with HCK?

When you enter a joint venture (JV) with HCK, your land is treated as a key contribution to the project. Instead of selling your land outright, you partner with HCK to develop it — and you receive your return based on the agreed JV structure.

Below is a clear overview of the most common ways landowners get paid in a JV, and how returns are typically calculated and distributed.

1) The Main JV Return Options (How Landowners Get Paid)

HCK joint ventures are usually structured in one of the following ways:

A) Profit Share (Landowner Shares Project Profits)

This is one of the most common JV models.

How it works:

You contribute the land into the JV structure.
HCK manages the development, funding, and execution.
When the project generates profit, it is shared based on an agreed ratio.

Example:

Landowner: 30% of net profit
HCK: 70% of net profit

When you get paid:

Typically in stages (as sales proceeds come in), and/or
After key milestones (launch, completion, final settlement)

B) Land Swap / Unit Swap (You Receive Completed Units)

Instead of receiving cash, the landowner receives a fixed number of completed units (residential, commercial, or industrial units).

How it works:

The land value is converted into an agreed “unit entitlement.”
You receive units upon completion (or in phases).

Why landowners like it:

You retain long-term upside (you can hold, rent, or sell the units later).
It’s more tangible than profit share for some landowners.

When you get paid:

Usually at handover/completion of the relevant phase.

C) Fixed Return Structure (Guaranteed or Pre-Agreed Payment)

In some cases, landowners prefer predictability.

How it works:

Instead of variable profit share, the JV agrees on a fixed payout amount.
This may be paid in tranches over time.

Important note:
Fixed return structures are typically only possible when:

The project is highly bankable, and
The financial model supports stable returns.

When you get paid:

Usually tied to milestone dates or sales progress.

D) Hybrid Model (Mix of Cash + Units + Profit Share)

This is increasingly common for landowners who want a balanced outcome.

Example hybrid structure:

Landowner receives:
- Some completed units (guaranteed portion)
- PLUS a smaller share of profits (upside portion)

This model can be attractive because it gives:

Stability (units), and
Upside (profit share)

2) How Your Land Value Is Determined

Before your payout can be structured, the JV must establish how much the land is worth inside the deal.

This is usually done using a combination of:

Market comparable land transactions
Independent valuation (if needed)
Development feasibility modeling
Best-use assessment (what the land can realistically become)

In most cases, the land value is not just “what someone would pay today” — it is evaluated in the context of:

zoning potential
approval feasibility
expected GDV (Gross Development Value)
risk and timeline

3) How Profits Are Calculated (What Counts as Costs)

If the JV is profit-sharing, a key question is:

“Profit after what?”

In most JVs, profits are calculated as:

Net Profit = Total Sales Revenue – Total Development Costs

Typical development costs include:

Construction costs
Professional fees (architects, engineers, QS, planners)
Authority contributions and submission fees
Infrastructure and utilities
Marketing and sales costs
Financing costs (interest, bank fees)
Project management costs
Contingency allowances
Taxes and statutory payments (where applicable)

Landowners often ask for clarity on:

What costs are capped vs variable
Whether HCK charges management fees
Whether overhead is included
How related-party appointments are handled

4) How and When Returns Are Paid (The Waterfall)

Most JV agreements define a distribution waterfall, which is simply the order in which money is paid out.

A typical waterfall may look like this:

Step 1 — Project Costs Paid First

Before anyone earns profit, the JV company pays:

construction
consultants
marketing
loan repayments
statutory payments

Step 2 — Funding Repaid (If Applicable)

If HCK injects capital or guarantees financing, the agreement may require:

repayment of injected funds first, or
repayment of bank facilities first

Step 3 — Profit Distribution

After costs and obligations are settled, remaining profits are distributed according to the agreed split.

5) Can You Take Units Instead of Cash?

Yes — in many JV structures, landowners can choose to receive:

cash
completed units
or a combination of both

This is typically agreed early because it affects:

project cashflow
unit allocation
launch strategy
legal structure

Landowners choosing units will usually clarify:

unit type (residential/commercial)
floor level, orientation, size
number of units
timing of handover

6) Are There Minimum Return Protections?

Some landowners ask for downside protection such as:

minimum guaranteed return
minimum unit entitlement
minimum land value recognition
priority payout mechanisms

These protections may be possible depending on:

project feasibility
financing structure
risk level
market demand

In many cases, the JV agreement can be structured to include:

preferred returns
priority distributions
caps on certain costs
phased entitlements

7) What Impacts How Much You Earn?

Your total return from a JV depends on several factors:

How developable the land is (zoning, approvals, constraints)
GDV potential (how much can be sold)
Construction cost environment
Sales velocity and pricing
Financing costs
Project timeline
The structure you choose (profit share vs units)