Our renewable energy developer clients are telling us that alongside the challenges of obtaining grid connections and planning permission, a key issue that has emerged is getting land deals done, and 2024 will be a key year for putting land rights in place for new projects.
We have thought a lot about how to get land deals done quickly for our clients and here are some of the key points which developers can bear in mind:
- Agree clear heads of terms at the start of the process. These should include a clear plan and not taking more land than is required for the project. If possible, accesses and cable routes should be identified at an early stage.
- Agree timing milestones with the landowner and their lawyers and land agents at the start of the process for eg return of drafts, replies to enquiries and an all-parties’ meeting.
- Start with a balanced, reasonable draft option and lease.
- Go and see the landowner in person to resolve any issues which come up during the process.
- Ask the landowner to chase their solicitor if they are not responding in a timely fashion.
- Have an all-parties’ call after one or two turns of the document to get all outstanding points agreed.
- The developer’s solicitor must continue to chase and be responsive and proactive.
- Possibly incentivise landowners with a bonus payment if the deal is done quickly.
The Burges Salmon team is always happy to speak to developers who would like to get their land deals done quickly!
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An all-parties' call at the appropriate time can be an excellent way to get the land agreements finalised in a timely fashion.
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