Why choose a promotion agreement?
The route you choose to bring forward your land can significantly influence the planning strategy, eventual purchaser and value achieved.
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A Promotion Agreement allows a specialist land promoter to create planning value before the land is offered competitively to the market.
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Richborough Commercial’s latest portfolio identifies five core advantages of promotion: an agile planning strategy, due diligence and partnership, aligned interests, open-market competition and maximising land value and net return.
A flexible
planning strategy
We are not tied to one developer’s product, pipeline or programme.
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The strategy can therefore respond to the opportunity itself and evolve as planning policy, evidence, occupier demand and market conditions change.
We fund the promotion process
Richborough funds the legal, technical, design and planning work required to promote the land.
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The wider Richborough model is based on the promoter taking the financial risk associated with promotion.
Our interests are aligned
Richborough Commercial’s fee is paid from the eventual sale proceeds.
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We therefore share the landowner’s objective of securing a strong planning outcome, negotiating attractive commercial terms and achieving the best possible sale price.
Competition once value has been created
A Promotion Agreement means you do not have to choose the eventual developer before the planning potential has been established.
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Once planning is secured, the opportunity can be marketed to credible developers, occupiers, property companies, funds and investors.
You retain ownership until sale
The landowner retains ownership throughout the promotion period and until eventual sale.
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Sales can also potentially be phased or split where different purchasers or uses create stronger value.
Promotion Agreement or
Developer Option Agreement?
Promotion Agreement
Promoter and landowner share an interest in maximising the eventual sale value
Land can be competitively marketed following planning
Planning strategy is not tied to one developer product
Landowner retains ownership until sale
Market competition can help establish value
Developer Option Agreement
Developer intends to acquire the land
Eventual purchaser is typically identified at the outset
Strategy may be influenced by the developer’s requirements
Developer holds rights under the option mechanism
Price is determined through the option agreement mechanism
The central distinction in the latest portfolio is that promotion creates planning value first and then allows credible buyers to compete once the opportunity is clear.
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Agreement terms vary. Landowners should take independent legal, tax and valuation advice.
Considering your options?
You do not need to know whether your land is suitable for development before contacting us.
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If you own land, represent a landowner or have identified a potential commercial opportunity, speak to our team. We can undertake an initial assessment and discuss the potential routes available.