Undeveloped property benefiting from the confluence of rising demand and a change-of-use designation qualifies as a strategic land investment.
Lucent focuses on this area because it is where the returns can be highest and the risks minimised.
Throughout the UK and several other countries, there exist several types of opportunities for the real estate investor. Among the most intriguing is strategic land development.
Strategic land is most often undeveloped property that is poised for change of use or rezoning. A town scheme may welcome development into residential or commercial use, but home builders or other developers are increasingly focused on their skill set: building and selling structures. The business of managing land to make it ready for development is best orchestrated by strategic land investment funds. Those fund managers assemble investors and then make acquisitions that offer the best opportunities – and lowest associated risks – for asset growth.
This is a moment in economic history when such strategic land investments make a great deal of sense. The cost of land is at historic lows, coming after several years of worldwide recession. There is pent-up demand for housing and commercial development because of the "pause" that has defined the past several years. An investment firm specialising in land trusts can identify where the first and most robust growth will occur as the recovery progresses.
An individual might be able to make a strategic land investment on his or her own. But a land fund with experienced and skilled managers such as Lucent's assembles a diversified portfolio of properties that minimise risk and maximise returns.