Land as an alternative investment has always been attractive to wealthy individuals, institutional investors and certain types of businesses such as developers.
The Lucent Strategic Land Fund offers such investors an alternative investment vehicle to make the most of the rising value of land.
While most conversation on investments focuses on what is found on the financial exchanges – stocks and bonds, primarily – many investors pursue a different strategy: alternative investments. These are investments that offer potential for appreciating value but may require deeper knowledge than the apples-to-apples nature of stocks and bonds. Alternative investments include land (real estate), precious metals (gold and silver, primarily), agricultural commodities (grain and livestock), energy commodities (petroleum futures) and by some measures renewable energy, such as solar panels and wind turbines. Alternative investments in financial instruments include short and ultra-short funds, hedge funds, private equity funds and venture capital funds.
The reasons investors choose alternative investments are as varied as the investors themselves. For some, it is about diversifying their portfolio. Certain alternative investments offer tax advantages. Timing matters as well, as some alternative investments may be bought and sold at a moment's notice while others may mature over decades.
The land investor will necessarily need to be educated by an advisor on the risks and rewards of different classes of land investments and particular parcels because of the number of variables inherent in real property. The unique structure of the Lucent Group allows investors to make their investment knowing that knowledgeable and highly experienced professionals are minimising the risks and maximising the significant returns to be made.