Landowners
We buy land from the owners who, for reasons of tax or estate planning, decide to sell down their holding.
The benefits of partnering with us
The benefits of partnering with SOL-R Global Infrastructure are:
Monetization
The owner receives a lump sum immediately and does not have to wait for rental payments to come in over the very long term
Estate Planning
By selling the land, an owner turns an illiquid asset into cash which can be easily distributed to children or heirs, most of whom do not want to be trapped in joint ownership.
Tax Arbitrage
Rental income is almost always taxed at higher rates than capital gains. And in some countries, like Italy or France, the capital gains tax rate can be zero or close to zero if the owner has held the title on the land for a reasonably long time. By selling the land, the owner immediately receives net proceeds that are equal to 13-20 years’ worth of net rental income.
Derisking
Solar farms are stable operations. But it does not mean they are riskless. By selling the land, the owner transfers these risks to SOL-R Global Infrastructure. View the risks here.
Reinvestment
Historically, land values have increased over time but very slowly, generally in line with GDP or population growth. By selling the land, an owner can receive cash which can then be reinvested in higher returning opportunities such as urban real estate or shares in companies.
Process
Our process is streamlined into 4 stages which, altogether, take 30-60 days.
Stage 1
Contact and communication of basic documentation (title, lease)
1
Stage 2
We analyze (i) the intrinsic value of the land, (ii) the financial strength of the tenant, (iii) the proforma economics of the solar farm and (iv) any existing lien on the land.
2
Stage 3
We make you an offer and indicate the timetable to completion.
3
Stage 4
Completion of the acquisition in front of a notary.