Commercial Landowner FAQs
If you're considering selling or promoting land for industrial, logistics or commercial development, it's natural to have questions about planning, costs, timescales, land value and the type of agreement you should enter into.
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Here we answer some of the questions landowners and their advisers most frequently ask about unlocking the development potential of land.
Landowner FAQs
How do I know if my land has development potential?
You don't need to know before contacting us.
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We assess factors including location, access, surrounding uses, planning policy, market demand, infrastructure, environmental and technical constraints and the potential need for new employment land.
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Some opportunities are already identified for development through the planning system; others require a longer-term strategy to establish the principle of development.
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Richborough Commercial can undertake an initial assessment of your land and advise whether we believe there is a realistic opportunity worth pursuing.
How do I sell land for commercial development?
There are several routes, including selling the land in its current condition, entering into an option agreement with a developer or appointing a specialist land promoter through a promotion agreement.
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With a promotion agreement, the landowner retains ownership while the promoter funds and manages the work required to pursue planning permission. Once the agreed planning position has been achieved, the land is normally marketed to potential purchasers. ​
This can allow the development value of the land to be established before it is sold.
What is a land promotion agreement?
A land promotion agreement, sometimes called a planning promotion agreement, is an agreement between a landowner and a specialist land promoter.
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The promoter pursues planning permission for development and subsequently markets the land for sale. Rather than buying the land itself, the promoter normally receives an agreed fee or percentage of the net sale proceeds when the land is successfully sold.
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At Richborough Commercial, this means our interests are closely aligned with those of the landowner: we both benefit from achieving a strong planning position and maximising the eventual sale value. Richborough describes its return as being based on a pre-agreed share of sale proceeds.
What is the difference between a promotion agreement and an option agreement?
The fundamental difference is who ultimately buys the land and how its value is established.
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Under a promotion agreement, a specialist promoter seeks planning permission but does not normally buy the land. Once the agreed planning position has been achieved, the site can be marketed to potential purchasers, creating an opportunity for competitive bidding.
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Under an option agreement, a developer normally obtains the right to buy the land itself within an agreed period, usually according to a valuation mechanism contained within the agreement.
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That distinction is particularly important when considering how the eventual sale price will be established.
Why can a promotion agreement be better for a landowner than an option agreement?
For landowners whose priority is maximising the value achieved when their land is sold, a promotion agreement can have significant advantages.
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A promoter is not seeking to buy the land as cheaply as possible. Its role is to secure the strongest achievable planning position and then help obtain the best sale price, with its remuneration usually linked to the eventual proceeds.
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Marketing the consented opportunity can also expose it to competition between developers, investors or occupiers rather than committing at the outset to one eventual purchaser. ​
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However, promotion and option agreements have different advantages and contractual terms. Landowners should take independent professional and legal advice before deciding which structure is appropriate for their circumstances.
Who pays the cost of getting planning permission?
Under Richborough's promotion model, Richborough funds the costs of promoting the site through the planning process, subject to the terms of the individual agreement.
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That can include planning, design and technical work, planning application costs and specialist assessments required to progress the site. Richborough's existing landowner guidance also states that it covers the legal fees associated with entering into its Planning and Promotion Agreement.
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This means the landowner does not have to take on the potentially substantial cost and planning risk of promoting the site alone.
Do I have to sell my land to Richborough Commercial?
No. That is an important distinction between the promotion model and a developer option.
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Richborough Commercial promotes the land on the landowner's behalf rather than securing an option to acquire it for its own development pipeline.
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Once the agreed planning position is achieved, the development opportunity can be marketed to prospective purchasers.
How does Richborough Commercial maximise the value of my land?
Our aim is to create value in two stages.
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First, we seek to establish a strong and deliverable planning position, informed by planning, technical, design and commercial considerations.
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Second, rather than fixing the eventual purchaser at the beginning of the process, the development opportunity can be marketed competitively once its potential is clearer.
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That gives prospective developers, occupiers, investors and other purchasers the opportunity to compete for the site.
Our remuneration is linked to the sale proceeds, so Richborough and the landowner share an interest in maximising the value achieved.
How much could my land be worth if it gets planning permission?
There isn't a standard price per acre for commercial development land.
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Value can be affected by location, permitted use, development density, access, infrastructure requirements, abnormal costs, planning obligations, market demand and the type of businesses or developers interested in the opportunity.
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One of the benefits of promotion is that planning and technical work can establish a much clearer development proposition before the land is exposed to the market.
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The competitive sale process can then help establish what purchasers are prepared to pay for that particular opportunity.
Will I still own my land while Richborough promotes it?
Yes.
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Under a promotion agreement, the landowner retains ownership during the promotion process. The promoter does not normally purchase the site; it works to secure the agreed planning position and subsequently market it for sale.
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The detailed rights and obligations of both parties are set out in the individual promotion agreement.
Will I have a say in what is proposed on my land?
We work in partnership with landowners throughout the promotion process.
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The agreed strategy and contractual arrangements establish how key decisions are handled, while our specialists develop proposals informed by planning policy, market requirements, technical evidence, design and consultation.
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We also recognise that land can have considerable personal and family significance. Understanding what matters to the landowner – including their aspirations for the eventual legacy of the site – is an important part of that relationship.
How long does it take to get planning permission for commercial land?
There is no standard timescale.
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A site that already has strong planning support may progress relatively quickly, while strategic sites requiring Local Plan allocation, major infrastructure or resolution of complex planning and technical issues can take several years.
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Before entering into an agreement, we assess the site's circumstances and explain the planning strategy we believe is appropriate, together with the likely route and timescale.
What happens if planning permission is refused?
Planning promotion involves risk because planning permission is never guaranteed.
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As specialist land promoters, our role is to develop and fund the promotion strategy and manage that risk on the landowner's behalf. Depending on the circumstances and the terms of the agreement, that could involve further representations through the planning process, revising proposals or pursuing an appeal.
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The appropriate approach will depend on the reasons for refusal and the prospects of achieving a successful outcome.
What happens once planning permission is secured?
Once the agreed planning position has been achieved, our Disposals team prepares the opportunity for market and manages the sales process.
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Potential purchasers can include developers, occupiers, property companies, investors and funds, depending on the nature of the site.
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Our objective is to create competitive interest and identify the right purchaser and offer for the landowner.
Do I need a solicitor or land agent?
We recommend landowners take independent legal and professional advice before entering into a promotion agreement.
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A promotion agreement can govern the relationship for several years and covers important issues including planning strategy, costs, decision-making, the sale process and distribution of proceeds.
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Having advisers acting specifically for you helps ensure you understand the agreement and that your interests are properly represented.
What should I look for when choosing a land promoter?
The headline promotion fee is only one consideration.
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Landowners should also look at the promoter's track record, financial resources, planning expertise, technical and design capability, understanding of the local and commercial property markets, approach to communication, disposal expertise and evidence that its planning permissions actually progress towards development.
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It is also worth asking who will work on your site, how decisions will be made, what resources the promoter will commit and how the eventual sale will be managed.
Why choose Richborough Commercial to promote my land?
Richborough Commercial combines specialist knowledge of industrial and logistics development with the wider multidisciplinary expertise of Richborough.
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Our Commercial team works alongside in-house planning, technical, architecture and urban design, Planning Delivery and Disposals specialists, allowing commercial, planning, design and deliverability considerations to be addressed together.
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Richborough has been promoting land since 2003, funds the planning promotion process under its promotion model and does not receive its agreed share until a successful sale, aligning its commercial interests with those of the landowner.
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Our focus is not simply on obtaining a planning permission. We want to create high-quality, commercially viable development opportunities that the market wants to acquire and that can move into delivery.
What types of land is Richborough Commercial looking for?
We are interested in land with potential for industrial, logistics, manufacturing, employment, retail, roadside and mixed-use development.
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The land does not necessarily need to have planning permission or already be allocated for development.
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If you're unsure whether your land has potential, speak to us. Our team can undertake an initial assessment and advise whether we believe there is an opportunity worth exploring.
I have been approached by a developer about my land. Should I speak to a land promoter too?
It can be worthwhile understanding the different routes available before committing your land.
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An offer from a developer, an option agreement and a promotion agreement can have very different implications for planning risk, control, valuation and how the eventual sale price is established.
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Taking independent professional advice and comparing the alternatives can help you decide which arrangement best meets your objectives.
Can I talk to Richborough Commercial without making a commitment?
Yes.
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You don't need to know whether your land is suitable for development or understand the planning process before speaking to us.
Tell us where the land is and a little about it, and our team can carry out an initial assessment and discuss its potential with you.
Have land with development potential?
Whether you've already been approached by a developer or are only beginning to explore your options, talk to our Commercial team.
Have another question?
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.