Under a promotion agreement, RLE in most cases act as a single point of instruction for a large team of professionals, who are selected and briefed to achieve the maximum financial return for the land owner. This involves assessing sites thoroughly beforehand, appointing the right experts at the right time to assist in assembling an application and monitoring and supporting the application throughout the process.
The planning system has become increasingly complex and risky and promotion agreements are a popular form of “Joint venture” to share risk and reward. Typically, once the initial costs (surveyors, consultants, solicitors, ecologists etc etc) then around 75% of the net sales proceeds are returned to the landowner. No financial risk would have been taken by them at this stage.
Promotion is popular since both parties are incentivised to maximise land value and the land can be sold at its full market value (rather than at a discount to it under the terms of most Option agreements). The Promotor and the landowner can truly work together towards a common goal including delaying the submission of an application or a sale in order to improve the overall prospects of success.
A good land promoter takes an active interest in design and masterplanning, not just unit count, and RLE have a track record of delivering good quality new “places”.