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What is Integrated Land Investments?
Integrated land investments or land investments is a combination of investment opportunities at every stage of the land development process for the regular retail investors to invest in.
As with real estate investments, integrated land investments are illiquid but very lucrative. That is because the real estate life cycle or the land development process is time tested, time proven and time honoured.
We associate the land development process with the real estate life cycle and it is this process which is divided into 4 stages of investment opportunities.
1st Stage:
The Acquisition Phase provides investment opportunities for investors who want to participate in the acquisition phase with the Asset Management Company. This is usually a very short-term plan of 12 to 24 months plan with a net returns from 8% to 10% per annum.
To know more about Integrated Land Investment opportunities click here.
2nd Stage:
The Land Value Creation phase is where the Asset Management Company would use their expertise to add economic value to the land. They would think of ideas and concept to add value to the land (e.g. Residential or commercial) and usually it is with accordance to the local government's requirements. Once they come up with a concept plan, the Asset Management Company need to submit to the local government for approval. Once approval is granted (rezoned), land value would usually increase significantly. This is where investors exit with their monies and returns.
A typical investment horizon would be around 4 to 7 years and with a returns range from 15% to 20% per annum.
3rd Stage:
The Development Phase is where the development of the project starts. Here investors get an opportunity to be co-developers with the Asset Management Company. Investors would hold on to their investment for around 3 to 5 years with an expected annual returns from 10% to 20%.
4th Stage:
Finally, the End Phase of the market which is where you find the finished product such as houses, condominiums or commercial spaces, etc. Here investors can also purchase the whole product either for consumption or for investments.
With the 4 stages of the Integrated Land Investments, investors can now participate at all 4 stages of the Land Development Process/Real Estate Life Cycle.
To know more about Integrated Land Investment opportunities click here.