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Trident Real Estate was approached by a developer, RothschildCo, for advice on tying up a site while it undertook the planning permission process to construct a series of multi-dwelling town houses.

Understandably, RothschildCo had no desire to commit large sums of money to acquire the site during the development approval process nor did it wish to place its hard earned equity at risk should Council not consent to the development application.

Trident Real Estate advised RothschildCo to enter into a call option deed as an investment strategy, which in simple terms would allow the client the option to purchase the subject site at some future point in time conditional on obtaining development approval for the proposed town house project.

Trident Real Estate then proceeded to successfully negotiate and draft the transaction documentation on behalf of RothschildCo, reaching a delicate compromise between our client’s objective to minimize the cost for the call option right and to maximize the call option period and the seller’s desire to receive a large payment for a short option period.

 

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