Landmark closes on ground rent deals worth £185m

Bolton-based Landmark Investments Group said it has placed £185m of ground rent acquisitions into lawyers’ hands on behalf of clients in the year to 30 September, including its largest deal of 2016 worth £70m.

Last year Landmark recorded £101m deals for clients.

Established in 2000, Landmark’s main area of activity is the acquisition and management of residential and commercial ground rents. The activity covers Landmark’s own portfolio as well as agreements for a number of retained clients. The company estimates that contracts this year cover ground rents on more than £7bn of land and property. Landmark’s portfolio has grown from a value of £25m in 2015 to £35m this year, and it predicts that it will reach £50m by 2017.

Mark Hawthorn, managing director of Landmark, said: “The past 12 months have seen Landmark Investments Group continue to grow and lead the market as advisors, investors and managers. We have put almost £300m of stock into lawyers in the last couple of years.

“We continue to see big opportunities for commercial property owners around the creation of commercial ground rents on new and existing stock. This year we have also been awarded investment and management mandates from major institutions and we expect to be looking after over 20,000 units within the next few months.”

The company recently launched Landmark Development Solutions, a new division which is an alternative sales channel for residential developers.

LDS will contractually underwrite entire housing schemes pre-construction. The developer is then free to market and sell the units as usual, and any sales will offer a profit share for both parties. At the end of the construction and marketing process LDS will acquire any unsold units, allowing the developer and lenders a clean exit.