Economics and participation
The budget, cost breakdown, participation model, fees and how the result is shared are all set out in the project documents before the deal.
FROM IDEA TO OUTCOME
One project.
Managed as a whole.
DNPI runs the whole project: property selection, design, renovation and sale. We coordinate everyone involved, the paperwork and each stage; the investor can see why each decision was made, what budget has been agreed and what stage the project has reached.
DNPI / Participation model
Shared results. Equal shares of profit.
Project profit is shared equally: 50% to the investor and 50% to DNPI Capital. The agreement sets out which expenses are deducted and how distributable profit is calculated.
50%
Investor
50%
DNPI Capital
Contractual compensation
10%
If the investor return after profit sharing falls below the contractual level of 10%, DNPI Capital pays compensation to the investor from its own fee.
The 10% is the investor’s return over the whole project after the profit split, not an annual rate. With a 50/50 split, it corresponds to a 20% return at project level, calculated on the same basis. The basis for calculating the return, how the 50/50 split is accounted for, and the amount, cap and payment timing of any compensation are set out in each project’s agreement. Compensation paid from DNPI’s fee does not amount to an unconditional guarantee that your capital will be preserved.
Illustrative example: agreed investment base of €500,000 and distributable profit after costs of €100,000 (20%). The investor receives €50,000 (10%) and DNPI €50,000. This is the entire project result before individual recipient taxes, not a forecast for a specific transaction.
DNPI / CONTROL
Clear terms before acquisition.
Change control
We lock in the scope of works and the procedure for approving budget changes. We compare planned and actual costs throughout the project.
Exit and scenarios
We talk through permits, timing and sale scenarios in advance, including scenarios with delays and additional costs. The reporting format is agreed with each investor individually.
We define objectives, timeline and your involvement.
DNPI CAPITAL / APPROACH
Managing risk starts
with identifying it.
We reduce risks through due diligence, scenario analysis, contracts and staged controls. Contractual compensation for a shortfall against the agreed return is funded from DNPI’s fee under the project terms; investment risks remain.
01
Legal and technical review
02
Full budget and contingency
03
Approval of material changes
04
Exit scenarios and regular reporting
Decisions grounded
in numbers and documents.
- Asset overview and market assessment
- Budget and variance scenarios
- Transaction structure and permissions
- Schedule and review milestones
Before your first investment decision
12 questions to ask before buying.
A worksheet to compare properties: entry price, full budget, permits, exit scenario and project control. Open, download or save it as a PDF.
Open the checklistDownload HTMLAvailable immediately, no registration. Personalised selection starts with your objectives and budget.
Investor resources
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