Property development companies: how to choose the right partner for your land 

Owners of land or property thinking about a sale need to ensure their chosen partner has the skills and resources to deliver. 

In a climate of growing economic uncertainty, land and property owners may contemplate selling some of their assets to raise additional funds. Getting this right is important as it can have an impact on the price secured for their real estate and the speed of completing the sale. 

Here are the three most important questions to ask before committing to a development partner: 

1. Does the property development company have the funds to complete the transaction? 

Whether selling their land outright or through a conditional deal, landowners should examine the financial strength of the business first. This is because many traditional property development companies rely on banks and other lending institutions for securing the entirety of their funds for land purchases. In an environment of higher inflation, energy costs and rising interest rates, this may prove harder to achieve than before. In addition, even agreed funding may be slower to obtain resulting in payment delays. 

For this reason, established businesses such as Godwin Developments that benefit from their own sources of capital should be viewed as a preferred choice by land and property owners. Godwin Developments raises funds through its sister company, Godwin Capital, minimising the need for traditional fundraising in the market. 

2. Does the developer have a proven track record in securing planning approval? 

In general, a land parcel with planning permission is more valuable than one without. This is why a developer with a solid track record in securing planning is a better partner than one that has none. 

The planning and development process can be complicated and at times protracted, but a developer with in-house skills has a definite advantage. This is because a business with its own planning resources – rather than one which outsources all planning – has a vested interest in securing a planning ticket at pace. As such they are aligned with the landowner’s interest in seeking results quicker than third parties. This ensures that the landowner can receive their payment earlier while construction work on site can start sooner, benefitting both parties. 

In addition to planning, Godwin Developments also has strong capabilities in construction, investment, communications, and marketing, all of which provide an extra level of confidence to landowners. 

3. Can the developer deliver the best scheme on the land – either residential or commercial – or both?  

The vast majority of developers across the UK specialise in either residential or commercial properties only. This means that very few have the ability to work well with both. This limits the development opportunities for some land parcels. 

Companies that can work across both residential and commercial real estate can usually deliver better solutions as they can extract maximum value from the land by thinking creatively. This is why Godwin Developments has two specialised divisions and employs a team of commercial and residential experts. This ensures that the business can deliver higher value schemes which result in better overall returns for land and property owners. 

Godwin Developments is a national business with offices in central Birmingham, London and Nottingham. It employs over 40 property professionals and has a respected board of property advisors. The company has established relationships with many housebuilders, build-to-rent operators, commercial and industrial names. Some of Godwin’s customers include Lidl, Costa Coffee, Starbucks, McDonald’s, Burger King, Popeyes, Subway, Greggs, and others. 

For more information on Godwin’s property development portfolio click here

If you wish to have an informal and confidential discussion with the team about land opportunities, please email: [email protected].