Real Estate Syndication — Legal Forms of Pooling Investors
Real estate syndication means combining the capital of several investors for a single real estate project — acquisition, development or reconstruction. Georgian law has no special syndication statute, so groups of investors use the corporate forms of the law on entrepreneurs: primarily the limited liability company and, for larger projects, the joint stock company. This page explains how these forms work in the syndication context and what the law determines about shares and shareholders' agreements.
The economic essence of syndication is simple: a project too large for a single investor is divided among several participants. The legal essence consists in which corporate form is chosen — it determines the participants' liability, the governance regime and the initial proportions of participation in the capital.