At Clarendon, we appreciate that your land is often your most prized possession and may have been owned by your family for many generations. This means that deciding to promote your land for any kind of development is a big decision.
Essentially, as your promotion partner, we use our in-house expertise, along with a team of highly-regarded consultants to promote your land through the often challenging planning process. We use our private capital to fund the promotion of the land which means that the process is free of risk to you as landowner, but also ensures that we have a vested interest in ensuring it is promoted correctly.
Our aim is to deliver a planning permission that can be implemented by a house builder, with as little risk and uncertainty as possible. This is proven to deliver maximised land receipts for landowners.
As landowner, you can be involved as much or as little as you wish and, of course, we are always happy to speak with your retained advisors, should you so wish. We seek to ensure that the process is as smooth as possible for you, from start to finish.
Promotion Agreement
In recent years, the Promotion Agreement has widely become the contract of choice for landowners, rather than the historically favoured Option Agreement. Under a Promotion Agreement, once a site achieves planning permission, it is sold to a housebuilder on the open-market, with the aim of generating the highest land receipt possible. The Promoter is then rewarded for their risk with an agreed share of these sale proceeds, meaning that both parties have aligned interests in maximising the value of the land. In the case of an Option Agreement, it is in the interest of the developer to purchase the land for as little as possible, therefore maximising their development profits. This often leads to lengthy negotiations and often legal intervention before a price is agreed. The competitive tender that is held under a Promotion Agreement will usually generate a higher land value than an Option price negotiation.
Let’s talk…
If you are interested in discussing land promotion in any greater detail, please do not hesitate to contact us.
