Law360 Interviews Polentz on Push for Project Controls

Gush of Real Estate Capital Fueling Struggles for JV Control
– Law360

Law360 interviewed Manatt's Michael Polentz, co-chair of the firm's Real Estate and Land Use practice, for an article on the increased negotiations between capital investors and developers regarding control over U.S. real estate projects.

Law360 reports that the question of how much control the developer and capital provider will have when the two jointly invest on real estate projects has become one of the most intensely negotiated aspects of such ventures. Investors may agree to invest in the venture but insist on a provision that says they won't actually contribute money until certain construction milestones have been met, a way to gain some protection.

"Institutional investors these days are becoming much more aggressive as it relates to the control," Polentz said. "They are not necessarily interested in day-to-day operations . . . They have the ability to take stronger, more aggressive positions."

Read the article here

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