Four steps to P3 success

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To learn more about the four steps to a successful P3, download the full report: http://bit.ly/1j76nsq

From universities to transit authorities to cultural institutions, public-sector organizations are discovering the tremendous value to be gained from executing a successful public/private partnership (P3). P3s not only help fix budget issues, but can provide in-depth real estate knowledge and creativity to help government and not-for-profit groups overcome obstacles.

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Four steps to P3 success

  1. 1. Four steps to P3 success
  2. 2. 2 Four steps to P3 success More and more public entities are discovering the tremendous value to be gained from executing a successful public/private partnership (P3).
  3. 3. 3 Four steps to P3 success A P3 can help provide capital resources to enable an important development, but the value of a P3 goes far beyond simply fixing a budget. Think of a P3 as a project-delivery method rather than simply a funding mechanism. Private developers provide in-depth real estate knowledge and creativity to help government and not-for-profit groups overcome obstacles, creating a winning scenario for everyone concerned.
  4. 4. 4 Identify a feasible project When should a public-sector entity consider a P3? In general, partnerships are ideal for large or complex projects where the government or institution controls land or property that can be developed with some form of income stream in mind. 1
  5. 5. 5 Set up an appropriate procurement 2 A P3 project needs to meet your expectations as well as developers. They will be interested in the following: - Return on expectations - Cost impacts - Timing/control - Risk
  6. 6. 6 Characteristics of selecting a key partner 3 Although private-sector proposals tend to focus on maximizing return while minimizing risk, an experienced private developer should understand the differences of what matters to government agencies and demonstrate how their proposal furthers the mission/task/goals of the public entity.
  7. 7. 7 Long-term asset management After the bid process is complete, most of the heavy lifting is still ahead. The development phase is the next hurdle, followed by a long-term plan for managing the asset to serve the needs of all partners. 4
  8. 8. 8 Experience ensures success Your odds of success with a P3 delivery structure increase with experience. JLL has experience partnering with public institutions as well as developers and can help drive a successful and mutually beneficial P3 project.
  9. 9. COPYRIGHT © JONES LANG LASALLE IP, INC. 2014 Want to learn more about successful P3s? Click here to read our full paper Engage a knowledgeable expert Kevin Wayer: Kevin.Wayer@am.jll.com Barry Scribner: Barry.Scribner@am.jll.com Thank you Get the latest in government real estate news Click here to visit our blog

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