Questions about leasehold property (and how to offer it)

In particular pinging @Beano , a few questions about leasehold properties.

Hypothetical: You own some prime a-grade land in a commercial core part of a major region, where zoning is flexible for 56m high towers and a 6.5FSR. The rules are that the bottom two stories (approx) are for commercial, whilst the other stories may be used for residential. You have a little under 900m2 of land, and so does your neighbour. Assuming you were to also purchase the neighbour, but you could not afford to build the mixed comm/resi premises:

• Could you offer the land as a leasehold to a company, a long term lease, and they finance the build?
• If yes to the above, how would you best approach a company? What kind of companies to look for?

• If yes to both of the above, is it the best use of resources, or is it better to organise a build and sell?
• Is it better to do a JV with a company where they build and wear all costs, but you own land until it is all sold?

Hope I was clear with everything, just trying to make sense of how leaseholding works?


An example of a leasehold situation, but with larger land, and lower height of building.

Spoiler

https://www.google.com.au/maps/plac...ab462!8m2!3d-33.8039435!4d150.9793259!6m1!1e1

 

I would say yes to both
I would leave it to the real estate agent to do the sale of the leasehold
Are you thinking of a terminating lease like the ABC at Southbank brisbane?
I believe the Sydney GPO is also on a leasehold title
No i would not do a JV

 

@Chabs There are many things to overcome with leasehold including how can you justify that it's not a scheme to avoid stamp duty, addressing the relevant sections of the real property act etc? Is there anything specific or special about it that makes it desirable as leasehold rather than a sale of the freehold?

 

I stated the situation confusingly, more simple terms, hypothetical you own 1800m2 with that zoning, how would you leasehold it? What's the next step?

 

10 x 5 year consecutive leases. Tenant may give notice 12 months out if they wish to break next consecutive lease.

 

Okay and what about the potential to build residential on top, that's a lot of potential upside!! Pretty sure there's approx 110 unit or so in it