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Purple Holdings Limited

2 min read

A joint venture ratio, explained

Landowners are told "60:40" long before anyone explains what the numbers are of. This is what a ratio actually divides, and what moves it.

Two people going through documents together across a table

If you own land in Dhaka you have been quoted a ratio. Somebody said 60:40, or 55:45, and the conversation moved on before anyone explained what the numbers were of.

They are shares of the built area. In a joint venture the landowner provides the land, the developer provides the money and the building, and the finished apartments are divided between them in the agreed proportion. Nobody sells anything to anybody.

What actually moves the number

  • Where the land is. The same plot in two areas supports two different buildings and two different sale prices.

  • How large it is. A bigger plot allows a more efficient building, and efficiency is what the developer's share pays for.

  • Road width and access, which determine what can be built and how high.

  • Whether the papers are clean. A plot that needs a mutation sorted out is a plot with a delay in it, and delay is cost.

  • What the developer is putting in besides construction — the signing amount, the rent while you wait, the finish.

A ratio quoted without seeing the documents is a guess. Treat a number that arrives before anyone has looked at your papers as an opening position rather than an offer.

The terms that matter as much as the ratio

A better ratio with worse terms is a worse deal. Ask about all of these in the same conversation:

  • Which apartments are yours — floor, facing and size, named in the agreement rather than decided later

  • The signing amount, paid when the agreement is signed

  • Rent during construction, if you are moving out of a home on the plot

  • The handover date, and what happens if it is missed

  • The specification, written down: what the finish actually is

  • Who pays the approvals, the utility connections and the registration costs

What to have ready before you talk to anyone

  • The deed, the mutation and current rent receipts

  • The mouza map

  • The plot's size and road width

  • A clear picture of who owns it — if it is inherited and held between several people, everyone has to agree

Having those in order is worth more than negotiating hard. It is the difference between a proposal and a conversation.

If you own land and want to know what it could support, tell us about the plot — the details go to a private list, not to a shared inbox.

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