Harco Assets Group believes commercial ground rents are a real opportunity for the market. Our current landmark investors are leading the way with a number of initiatives which have been developed to assist and help vendors to generate and release additional value from their freehold land & property.
Benefits of Commercial Ground Rents
Generate and Release Additional Equity Value by Restructuring The Title
Release Funds While Retaining Long Term Ownership
Can be Used to Fund Purchases and Reduce Cash Input
Alternative to External Debt Such as Banks or Private Equity
It’s a straight forward concept very much like a form of sale and leaseback.
The difference, however, is the lease is very long and the rent is low in comparison to open market rent.
The property owner retains ownership of the property or asset on a long lease and is responsible for the ground rent payment, all other income generated is retained by the property owner. As ground rent is a secure and robust income stream, the price paid for it will be much stronger than the overall asset would typically attract.
The split into freehold and long leasehold creates an uplift in the overall value of the site and therefore a gain to the owner.
Hospitality, Leisure, and Sports
Unusual / Problem Properties Considered
Minimum Asset (not ground rent) Value £500,000 No Maximum
Single or Multiple Assets / Portfolios