Commercial ground rent deal unlocks development
Landmark Investments Group has acquired a 3.5-acre site on Wharf Street in Ashton under Lyne, Tameside using a ground rent deal structure which will enable the land to be redeveloped into a mixed-use scheme.
The deal, which Landmark and its law firm TLT negotiated with Laytons, representing the private landowner, will see Landmark lease the site back to the original owners on a 150-year lease at a low passing rent.
Landmark said that the structure of the deal allows the owner to vacate the site for new premises which then frees up the land for future mixed-use development.
Mark Hawthorn, director of Landmark, said: "We've been developing a new approach to the structure of ground rent deals for some time, particularly on land used commercially, and the site in Ashton is the first time we've implemented it at this scale. I am very pleased with the smoothness of the transaction and it is clear to me our new deal will open up many more commercial sites for future development. It can also be used to release value from existing building stock."
