What is land assembly?
The process of forming a single site from a number of lands, usually for eventual development or redevelopment. This will include acquisition of individual interest and the eventual development or redevelopment, removal or discharge of any restrictive covenants or other encumbrances and obtaining physical possession, when required, from occupiers.
Why should communities assemble land?
From a developer’s perspective, development projects are all about time to market. Assembling properties one piece at a time is typically a very lengthy process; especially when the subject properties have environmental or legal challenges associated with prior use. This is a very costly process for a developer to undertake on their own and, as a result, they are typically attracted to larger tracts of undeveloped land on the fringes of developed areas. Through strategic land assembly, communities can position properties in their urban core to appeal to the development community and be able to attract a wide range of development.
Land assembly is a challenging process that requires creativity, negotiation and a good deal of problem solving. A unique tactic for areas with a lot of privately held land is an equity investment approach. This approach involves the creation of a development entity, such as a limited liability corporation, to acquire control of the assembled properties. Landowners receive shares in the future development in return for selling their property to the development entity.