From Plot to Portfolio: High-Yield Residential Property Development Play

Phase 1: Adjiringanor 1-Plot Development

Phase One expands our collaborative development model, harnessing pooled capital and strategic real estate positioning to generate long-term passive income and unlock trapped equity.

This phase centers on the development of a 3-unit, 3-bedroom apartment complex and 3 bedroom residence with a penthouse suite, fully financed through equity contributions from four co-investors, each committing USD 62,500—bringing the total project cost to USD 250,000. The value of the land contributed by the family is USD 200,000.

Upon completion, the property is projected to be valued at USD 600,000, creating an immediate unrealized capital gain of USD 350,000.

The rental model generates USD 5,400/month:

  • Three units leased at USD 1,200/month

  • One penthouse unit leased at USD 1,800/month

To unlock liquidity while retaining ownership, the group secures an equity release mortgage of USD 360,000 (60% LTV, 15-year term, 15% interest), with repayments capped at USD 5,390.23/month. To qualify, all parties need to demonstrate a collective annual income of USD 161,712.

The USD 360,000 in mortgage proceeds is reinvested as initial capital for Phase Two, continuing the compounding, equity-driven model.

The family will own equity worth USD 266,666,7 whereas each co-investor’s equity will be worth USD 83,333.33

Phase 2: Adenta-Frafraha 1-Acre Development

Phase Two: Scaling Success with Smart Capital and Equitable Growth

Phase Two expands on the success of our initial collaboration by undertaking a second residential development project on a 1-acre parcel of family-owned land, located just 300 meters off the Adenta–Frafraha road, next to the Puma Fueling Station. The land, valued at USD 400,000, represents the family’s equity contribution to this phase.

The development includes the construction of nine detached residential units, with a total project cost of USD 540,000. The financing for this phase is structured around a blend of reinvested profit and additional co-investor capital, continuing the project’s philosophy of recycling value to drive forward development.

The first 6 unit are constructed using USD 360,000 in rolled-over mortgage proceeds from Phase One. This amount represents a combined contribution of:

  • USD 160,000 from the family (44.44%)

  • USD 200,000 from the four co-investors (55.56%)

One unit is then sold for USD 200,000, and the proceeds are fully reinvested into the project to fund the remaining three units.

To unlock liquidity and fund construction, 1 of the 9 units is sold upfront, leaving 8 units for ownership allocation.

Each co-investor is allocated one unit in Phase 2, reflecting their total contribution of USD 577,120. The family retains four units, based on their larger contribution of USD 832,880 in land and reinvested capital.

While a purely proportional model would entitle the family to 4.72 units, they are receiving only four. To address this equity gap, the family will be compensated through:

Instead of a cash equalization payment, the family will receive a larger share of rental income from each investor equivalent to the value of the 0.72-unit shortfall (approx. USD 54,000 or USD 13,500 per co-investor). This redistribution continues until the family’s full equity entitlement is restored after which point the co-investor owns the unit.

This approach:

  • Preserves full unit ownership for each co-investor

  • Minimizes upfront cash requirements

  • Ensures the family’s contributions are fairly recognized over time

This means that the co-investor’s units will be required to be rented out until the shortfall is covered.

Terms and Conditions

FAMILY RETAINS TITLE UNTIL POINT OF SALE

The family shall retain full legal title to the Adjiringanor and Adenta-Frafraha lands throughout the development period. Title to any portion of land or unit shall only be transferred to a buyer at the point of completion of sale, following full payment of the purchase price.

 

Profit Distribution Protocol

Profits from unit sales shall be distributed in line with the agreed equity structure. Distributions will be made only after deducting all construction costs, taxes, developer fees, and any incidental expenses. Payments to stakeholders will occur within 5 working days of the completion and settlement of each sale. All distributions will be logged and co-signed by the escrow account managers.

 

Exit, Buyout & Dispute Resolution Mechanisms

  1. Exit: Any party intending to exit before project completion must offer their share to other stakeholders under a Right of First Refusal (ROFR).

  2. Buyout: Equity valuation for buyouts shall be determined by an independent third-party valuer acceptable to both parties.

  3. Dispute Resolution: All disagreements will be addressed first through mediation. If unresolved, parties agree to binding arbitration under Ghanaian law.