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Operating Agreement For Real Estate Investment LLC
"I need an Operating Agreement for a Real Estate Investment LLC in Indonesia for a joint venture between our Singapore-based investment firm (60% ownership) and a local Indonesian developer (40% ownership), focusing on luxury residential developments in Bali with an initial investment of $10M planned for March 2025."
1. Parties: Identification of all members/parties forming the LLC
2. Background: Context of the LLC formation and its intended purpose in real estate investment
3. Definitions: Key terms used throughout the agreement
4. Formation and Name: Legal establishment of the LLC and its official name
5. Principal Place of Business: Registered address and location of operations
6. Purpose and Powers: Scope of real estate investment activities and general powers of the LLC
7. Term: Duration of the LLC's existence
8. Capital Contributions: Initial and additional capital requirements from members
9. Membership Interests: Allocation of ownership interests and voting rights
10. Management Structure: Governance framework and management responsibilities
11. Meetings and Voting: Procedures for member meetings and decision-making processes
12. Distributions and Allocations: Profit sharing and distribution policies
13. Books, Records and Accounting: Requirements for financial record-keeping and reporting
14. Transfer Restrictions: Limitations on transferring membership interests
15. Dissolution and Liquidation: Procedures for winding up the LLC
16. Representations and Warranties: Members' confirmations regarding their capacity and authority
17. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
1. Foreign Investment Provisions: Required if any members are non-Indonesian entities or individuals
2. Real Estate Asset Management: Detailed procedures for managing real estate assets if the LLC will directly manage properties
3. Investment Committee: Structure and powers of an investment committee if required for larger operations
4. Tag-Along and Drag-Along Rights: Optional provisions for exit mechanisms in larger multi-member LLCs
5. Property Development Provisions: Required if the LLC will engage in property development activities
6. Financing Arrangements: Required if the LLC anticipates taking on debt or external financing
7. Environmental Compliance: Required for properties with environmental considerations
8. Employee Matters: Required if the LLC will have direct employees
9. Insurance Requirements: Detailed insurance provisions for property management operations
1. Schedule A - Member Information: Details of all members including contact information and initial capital contributions
2. Schedule B - Initial Properties: List and details of any properties already identified for investment
3. Schedule C - Management Structure: Detailed organizational chart and management responsibilities
4. Schedule D - Investment Criteria: Specific criteria for property investments and target markets
5. Schedule E - Fee Structure: Details of management fees, performance fees, and other compensation
6. Appendix 1 - Financial Reporting Templates: Standard formats for financial reporting
7. Appendix 2 - Property Management Guidelines: Standard operating procedures for property management
8. Appendix 3 - Compliance Checklist: Regulatory compliance requirements under Indonesian law
Authors
Real Estate
Property Development
Investment Management
Commercial Property
Residential Property
Property Management
Real Estate Investment Trusts
Construction
Real Estate Finance
Property Technology
Legal
Corporate Governance
Real Estate Operations
Investment
Finance
Compliance
Risk Management
Property Management
Business Development
Executive Leadership
CEO
Managing Director
Real Estate Investment Manager
Property Development Director
Legal Counsel
Corporate Secretary
Chief Financial Officer
Investment Analyst
Asset Manager
Compliance Officer
Property Manager
Business Development Director
Risk Manager
Board Member
Operations Director
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