Mixed-Finance Rental Term Sheet
Mixed-Finance Rental Term Sheet
I. Overview
This Term Sheet outlines the proposed terms and conditions under which [Your Name] ("Investor") and [Developer Name] ("Developer") will enter into a partnership for the development of a mixed-finance rental project located at [Property Address]. This document summarizes the key financial and operational aspects aimed at guiding final legal agreements.
The intent is to create a sustainable, profitable venture that meets the growing demand for mixed-use properties in [City] combining residential and commercial uses. By signing this Term Sheet, both parties indicate their intention to proceed with negotiations on this basis and acknowledge that this document is not legally binding except for the terms stated under the "Exclusivity and Confidentiality" and "Legal Expenses" sections.
II. Financial Terms
The financial components of this mixed-finance rental agreement are designed to outline the investment structure, expected returns, and fiscal responsibilities required from both parties:
Initial Capital Investment: [Your Name] will provide an initial capital injection of [Amount] USD, which will cover [Percentage]% of the total project costs.
Profit Sharing: Profits derived from the operational revenues of the property will be distributed as follows:
-
[Developer Name]: [Percentage]%
-
[Your Name]: [Percentage]%
Additional Funding: Subsequent funding arrangements necessary for completing the project will be agreed upon based on milestone achievements.
III. Project Development and Management
The development of the property will adhere to a pre-agreed schedule and set of milestones. The management structure will ensure smooth operational execution, supported by a robust governance framework. [Developer Name] will oversee the daily management and operation of the rental property with oversight from [Your Name] through quarterly reviews and as needed:
-
Appointment of a project manager by [Date].
-
Commencement of construction by [Date].
-
Completion and opening of commercial units by [Date].
-
Full occupancy of residential units by [Date].
IV. Terms and Conditions
The following terms and conditions will govern the partnership between [Your Name] and [Developer Name] throughout the project’s development and operational phases:
Duties and Responsibilities: Each party’s role and responsibilities will be explicitly detailed in the final agreements to prevent conflicts and ensure project alignment.
Governance: A joint steering committee will be established comprising representatives from both [Your Name] and [Developer Name] to oversee project progress and decision-making.
Risk Management: Risks will be actively managed, and mitigation strategies will be developed jointly by the risk management teams of both parties.
V. Exclusivity and Confidentiality
[Your Name] and [Developer Name] agree that during the period of this agreement, neither party will engage in discussions or transactions with any other parties concerning the property at [Property Address] without prior mutual consent. This exclusivity will last for [Time Period] following the date of this agreement.
All discussions regarding the project and terms stated within this Term Sheet are to remain confidential. Information may only be disclosed to parties as mutually agreed upon and necessary for advancing the project’s development.
VI. Legal and Miscellaneous
This Term Sheet is intended as a preliminary document to facilitate further negotiations; it does not constitute a commitment to undertake the project. The final terms will be set forth in detailed agreements to be signed once due diligence has been completed by both parties.
The cost of legal and other transactional fees will be initially borne by [Your Name], subject to reimbursement according to the terms of the definitive agreements post-completion of the deal.
Name: [Your Name]
Date: [Date Signed]
Name: [Developer Name]
Date: [Date Signed]
