Legal Challenges in Structuring Mixed-Use Developments

In the last article, we discussed the various laws and regulations that govern mixed-use development projects in Kenya. In this article, we will tackle the legal challenges in the structuring of mixed-use development.

For a developer to establish a mixed-use development project which is physically and functionally integrated, a mixed-use development lawyer with experience should be consulted. This, in the long run will allow the developers, tenants, consumers and neighbors to benefit from the mixed-use of the property. Some of the legal structures in the structuring include the following:

1. Operational challenges

One or several governing documents are required for the coordination of operations for the mixed-use development project. The documents, however, may vary depending on the type of project. The overall use of these documents is to establish simplicity in construction, identify the restrictions on utility as well as allocating finances for various expenditures.

On the other hand, the governing documents should specify who will maintain the project as well as how it will be done.

2. Ownership structure

A mixed-use development may be owned by either a single entity/an individual or several entities each of who own a component of the mixed-use project. To determine the necessary structure often involves weighing the benefits of centralized control brought about by the single entity against the degree of complication in the transaction and development that comes about when the project is a single entity.

-Edited by Emomeri Maryanne