Just as the name suggests this investment is based on realising the true value of land in emerging
markets by adding value in the form of planning permission and/or formal title to the land and then
selling on to developers at the new, greatly-enhanced price
When you add the experience and strength of the development company board to the powerful network that
has been developed and which continues to grow, you will begin to appreciate that we are in a unique
position to take advantage of the wonderful opportunities of land realisation in the emerging markets.
Examples from the developer:
Bodrum, Turkey - we purchased this land with planning permission. Our ability to design a much more
desirable site than those around us increased the land value by more than 100% in 15 months.
Cesme, Turkey - we contracted to purchase this land subject to planning and due to the Holiday Village
design that we have submitted to the planning authorities this land is now already valued at 180% of its
original value in less than 8 months. It will be much more valuable once planning permission is granted.
Bansko - we purchased this land without planning but frontline to the acclaimed Iain Woosnam Golf
Course at Razlog Bansko and in 10 months the land has doubled in value, when we obtain planning
permission it will be worth 3 to 4 times the price we paid.
Marrakech - we identified an under-valued project with planning permission and contracted to buy it.
Once the contract was signed we had the site revalued which resulted in an immediate 23.8% gain. This
gain will increase substantially once we redesign some elements on the site to make it more profitable.
This is an example of a potential quick gain where we can be in and out in a few months if we so desire
by selling on to a developer.
Panama - we have identified a site with hidden value. There is the potential for an immediate 60% return
the very day that the purchase contract is signed. This does not even involve selling the land to another
party. The land will still remain within our ownership and we will benefit from a greatly enhanced land value
once planning permission is granted making this a superb investment.
The Current Marketplace
Land in some of the most active emerging markets is increasing by staggering amounts. For example, land
in Morocco without planning permission but where we can firmly establish that planning permission would
be a certainty (we would make the granting of planning permission a condition of purchase) should produce
a profit around 200% - 400%.
If we chose to take a more speculative position and purchase the land after we have secured confirmation
that planning permission will be granted, but before the permission is actually officially granted, then the
profits would be even greater and in the region of 400% - 700%.
Of course, these levels of increases in land values are not available for long. To take advantage you need to
be experienced negotiators, have a high-level network, be able to respond quickly to a potential deal and
above all be in the know. If you have these attributes then the deals and the profits are there for the taking.
How can we make such big profits
Having identified the land we meet with the relevant planning authorities and receive an "in principal"
agreement that planning permission will be granted. It is at this stage that we must commit with the landowner
to purchase the land. Quite often we are dealing with a landowner who is a peasant farmer. He may
own lots of land but have very little capital. He certainly would not have enough capital to go through the
costly and time-consuming process of acquiring planning permission, nor will he know the type of planning
permission that adds the most value to the land relevant to sales demand. That is our specialist skill. In some
cases the landowners have no desire to wait for planning permission because the price that we offer for the
land is already "life changing" for them. They are simply happy to take the money at this very early stage.
This is a good scenario because both sides are happy. Both parties have a great deal.
If the landowner is prepared to wait for planning permission to be granted then we will have to pay more
for the land. That is a fact of life.
Due to our unique network we are being offered land every week. Normally we are offered land before it is
on the open market and at a lower price than other land in the area. This is because we get it before all the
agents have added their uplifts to the price.
