New sales channel could bring tens of millions of pounds of residential projects to site
23 September 2017 – LDS (Landmark Development Solutions) is our new and innovative alternative sales channel for developers, offering to remove risk and help retain the rewards associated with speculative development.
LDS will contractually underwrite entire housing schemes pre-construction, therefore removing developer’s fears around future pricing and demand. The developer is then free to market and sell its units on the open market. 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. This allows the developer and its lender a clean exit.
Well balanced for all parties
Mark Hawthorn, CEO, Landmark Investments Group said: “We’re proud to finally bring LDS to the market. We’ve invested a great deal in discussions with developers, lenders, lawyers and specialist advisors to shape the offering so it’s well balanced for all parties.”
“The North West is our initial focus, however we are looking at a national roll out in the near future. We are predominately looking at housing developments in towns and suburbs, rather than city centres and are in advanced negotiations on several sites, which should contract in the near future. Our research clearly shows there is around £1,000,000,000 of qualifying stock per year in the North West alone. We believe our offering will change the way many developers are able to both fund development and sell their sites.
“Developers are still having a hard time accessing funding, which they don’t expect to change anytime soon. Mainstream lenders, who are the best source of low cost debt, are very cautious of speculative residential development which forces developers down much more expensive channels. LDS simply removes the speculative nature and associated risk of development for lenders and developers. Once those concerns are removed developers are finding that a whole range of lending channels are opening up. We are already working closely with a number of lenders who see the clear benefit of our involvement.”