Kent-Macpherson has a long standing client relationship with many First Nations communities and governments throughout the province and across the country.
Understanding and respecting the aboriginal perspective, history and diverse culture is vital. Our focus during the appraisal process on First Nations land is to facilitate development and maximize value as well as to ensure consideration of the different types of leases and their impact on market value.
While all real estate has value, the greatest value to the widest range of prospective purchasers of First Nations land is generated by creation of a leasehold interest. The broader the permitted uses and longer the lease term, the higher the value.
The value of a leasehold interest is a direct function of the following:
- Permitted uses
- Term of the lease
- Type of lease
- Parcel size, soils & topography
- Location
- Proximity of Services
There are three types of Common Ground Leases:
- The Pre-Paid Lease- the lease fee or rent is prepaid for the entire term of the lease with no opportunity for the lessor to receive, or requirement for lessee to pay rent after the initial payment, until the lease expires.
- A lease with predetermined step-ups or participation clauses (i.e. % Rent)
- The more traditional lease with periodic (5 Year) rent reviews
It is essential to understand the factors affecting the type of lease utilized, as these influences differ if the lands are Band lands or Locatee lands. Further consideration is given to Band politics and policies, the proposed use of the land, and ultimately the real estate market forces. During our detailed analysis, we take careful consideration of the importance of the First Nations point of view in regards to; developing the lands in a socially and environmentally sustainable manner and protecting the integrity of the lands, while providing economic returns to the membership.
“Kent-Macpherson has been our family and businesses real estate valuation professionals for over 20 years. Whether at Tallus Ridge, or our many past and current real estate ventures, Kent-Macpherson consistently provides quality and reliable real estate advice we respect and trust.”