Promotion Agreements

Promotion Agreements are contracts between a land owner and a promoter that provide a frame work for the promotion of land for planning permission. The basic concept is that the Promoter takes the risk of the costs incurred in promoting the land in a defined window of opportunity and then takes a minority share in the increase the value of the land created by planning permission in a managed sale of the land to a house builder with consent for immediate development. These agreements sometimes include an arrangement for the provision of initial infrastructure works with a view to maximise the value of the land to be sold. If the promotion succeeds then the Promoter will be entitled to recover all the costs incurred in the promotion and take a defined reward from the sale proceeds when the land is sold.