Kate Turnham

Under the terms of the agreement the promoter must seek planning permission for development of as much of the land as is possible.  Once planning permission is obtained the promoter must seek to sell the land and then the charity and promoter will share in the sale proceeds. Promotion agreements require collaboration between the landowner and promoter and must allow the landowner to continue to use the land during the term of the promotion agreement without jeopardising the prospects of obtaining planning consent. As part of the transaction we had to deal with the requirements of the Charity Act for the disposal of charity land.

The proposed development formed part of a wider site which may, with planning, be developed in phases with various planning agreements including a school.  The clients did not have experience in dealing with development matters and needed close guidance and advice on the terms of the transaction and the wider reaching consequences of entering into the option agreement.  The matter also involved close liaison with the clients’ planning consultant.  There was an existing overage agreement binding the site which had to be factored into the drafting of the completion provisions within the option agreement.  Helping the clients with this transaction was very rewarding and provided invaluable experience for acting for both land owners and developers in the future.

The wider site had many issues to deal with including contamination, ecology and archaeology.  The seller had also entered into several planning agreements, including section 104 and section 38 agreements for the infrastructure at the site, which had to be considered as part of the transaction.  Following the purchase of the site, we subsequently dealt with the financing of the land to fund the development and also acted on the ongoing plot sales following construction. Dealing with this matter covered every aspect of a development transaction and was both challenging and rewarding.  It provided us with a valuable and close working relationship with our client where we were able to understand its working practices and business methods to work effectively on future projects.

We advised on the acquisition of the site to secure a key additional development opportunity for the client alongside two existing sites. The client had been seeking to secure this further site to expand its presence in this particular area.