Advising on the Sale of Part of a Hotel Site for Residential Development
The Challenge
We advised and acted for the owner of a hotel who wanted to sell part of the hotel's land to a developer for a residential development.
The principal challenge was separating the development site from an operating hotel while ensuring that the hotel's access, services, facilities and future use were fully protected.
Our Advice
We advised on the property and development issues arising from the proposed sale, including:
title, boundaries and rights affecting the land;
access and rights of way;
drainage, utilities and other services;
construction and development access;
planning and development requirements;
restrictive covenants;
protection of the hotel's business and retained land; and
the contractual arrangements for the sale and subsequent development.
We also considered the rights the developer would require and how these could be structured without unnecessarily restricting our client's retained property.
Resolving the Issues
Negotiations raised a number of issues concerning access, services, development rights and the relationship between the new residential development and the existing hotel.
We worked with the client and the other professional advisers to negotiate practical solutions and ensure that the necessary rights were documented clearly, while protecting the client's position as the owner and operator of the hotel.
The Outcome
We successfully negotiated and documented requirements for the sale of the development land, enabling the developer to proceed with its residential scheme.
At the same time, we secured appropriate rights and protections for the hotel, including arrangements governing access, services and the interface between the new development and the retained hotel land.
This allowed our client to realise the development value of part of the hotel site without compromising the continued operation and future use of the hotel.
Why This Matters
Selling part of a commercial site for development requires careful planning. A poorly structured disposal can create long-term problems with access, services, development rights and the use of the retained property.
We help landowners identify these issues early and structure transactions that allow them to realise the value of surplus development land while protecting their existing property and business.
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