Promotion Agreements
Promotion Agreements are the deal structure of choice for most agents and landowners.
This form of Agreement ensures transparency and a complete alignment of objectives for Landowner, Agent and the Promoter. Maxmisation of land value is at the very heart of this form of structure. This is achieved through enabling the Promoter to use their industry experience to obtain a market facing planning permission with all issues resolved, before the site is marketed on the Open Market for the housebuilders to bid in a wholly competitive environment. This guarantees transparency and maximisation of value for the land owner.
The Promoter is not looking to develop the site. The Promoter funds the planning and promotion process in it's entirety and in exchange for this risk, the Promoter's reward is an agreed share of the net price received when the site is sold to a housebuilder. This simple process ensures that the Promoter is seeking to maximise the site's value and inturn, look after the Landowner's interest throughout. Developers cannot offer the Promotion Agreement route to Landowners as it does not guarantee the developer the right to develop the site out. The competitive tendering process that is fundamental to the Promotion Agreement route guarantees the Landowner the maximum receipt.