Realising value from land may be easier than you think

Posted on 20th November 2018

For many land and property owners, finding a way to realise value from land and underperforming property assets is an uphill struggle. Edward Jeffrey, Development Manager at Rotherhill Developments, says this need not be the case.

For many land and property owners, finding a way to realise value from underperforming property assets is an uphill struggle.

Often the cost of professional pre-development and planning due diligence, combined with a lack of specialist knowledge, prevents development opportunities being explored, limits what can be done and restricts obtainable value.

In some instances, owners are undertaking minor refurbishment works, but often these don’t go far enough. Significant capital expenditure may be required to undertake comprehensive reconfiguration and redevelopment to make assets attractive to occupiers or to secure a higher-value alternative use.

A bespoke solution

Creating and implementing an effective property strategy is key to unlocking a development opportunity’s potential. This may include an asset management strategy for existing occupancy and residual income, together with consideration of a range of options for redevelopment.

Understandably, many landowners can be put off by pre-development and due diligence costs and may not have access to measured professional advice.

There are, however, a number of bespoke arrangements that allow landowners to maximise the value of their assets, working in partnership with a specialist property investment and development company and minimising their exposure to development and financial risk.

This is where Rotherhill can help.

Rotherhill is an experienced property development and investment company, with proven expertise and a strong track record in delivering major development and regeneration projects across the UK.

We can fund all development costs, from due diligence, planning and decontamination through to construction delivery, and marketing.

By way of explanation, we collaborate with landowners, listen carefully to their objectives and commit to giving them a minimum sale price or development return within the timescales of an agreed business plan.

The landowner pays no up-front costs, with Rotherhill receiving cost recovery upon completion and an agreed percentage share of a sale price or development return above the minimum, having enabled the landowner to obtain a greater return or value for their property.

There is no ‘one size fits all’ arrangement and the structure of a partnership agreement will be dependent upon the opportunity and the willingness of a landowner to expose themselves to development risk post-planning.

To ensure full transparency all partnership agreements are ‘open book’, providing honesty and integrity throughout every step of the process and ensuring that performance is demonstrable.

Swift action

The first step is to understand a landowner and their objectives. We are therefore looking to speak with anyone seeking an informal, no-obligation discussion on any potential opportunities.

We will provide initial, no-nonsense advice that enables quick decision making to proceed with a development where appropriate. Whether you wish to sell your land or property assets, or develop in partnership with us, Rotherhill can build a solution that is right for you.

Rotherhill seeks to achieve well in excess of the existing use value, offering landowners a significant share in development upside. Depending on the outcome of our initial assessment, landowners could quickly release capital from their land and property assets, a move which previously may have seemed impossible.

For more information please contact Paul Bagshaw, Managing Director, Rotherhill Developments at paul@rotherhill.com/ 01476 861797 or Ed Jeffrey Development Manager, Rotherhill Developments at edward@rotherhill.com/ 01476 861797.