Risks

What is the worst thing that can happen?     

When viewing any opportunity one must always give consideration to any potential downside. The downsides one could associate with land banking would usually be location, timescales and exit strategy.

CrownLand places great emphasis on site selection and wherever possible purchase land properties which lie within the path of progress – namely they would be potentially high on the agenda for future tourism and/or residential development within a given area.

With regard to timescales it takes CrownLand usually 18 to 30 months to generate the desired added value to the land and realise a sell. Careful consideration should also be given to how long one is comfortable in tying up a specific amount of capital, as resale durations and amounts cannot be guaranteed.

The exit strategy is simple. Like any other securities the participation shares are transferable and as land is a limited commodity, namely it has no manufacturability, there is always a demand.