South Australia has approved a new vertical land lease development, Best Life Angas Street, in the heart of Adelaide – in this week’s issue of SATURDAY, we take a look at how it will work.
In a traditional land lease community, the purchaser owns the house and rents the land it sits on from the operator. By contrast, a vertical land lease development sees the purchaser own the fit-out and rent the airspace from the developer, who retains ownership of the building.
This may seem complicated, says Simon Chappel, director of developer Prime Space Projects, but it’s a model adapted from 20 years of commercial development.
“For example, in a commercial office building such as the ones we built for Santos and IAG in Adelaide, we owned the building and Santos was the tenant. Santos paid for their own fit out and had the opportunity to renew their lease,” he said.
Read the full story in this week’s issue of SATURDAY – subscribe here.
