An article in the AFR about Crown Resorts’ decision to sell the air rights over a car park next to its Melbourne casino quotes property partner Gia Cari on the growing prevalence of this kind of transaction.
AFR property editor Nick Lenaghan writes that the Crown deal underlines how the space above a building – known as its air rights – has become increasingly valuable as developers look to maximise the scope of neighbouring projects.
Gia comments that the ability to buy air rights both to protect an asset and enhance the value of that asset has been around forever.
“But they are increasingly becoming more common as a path to creating value, particularly in Victoria where there is demand for greater height, density and the ability to do more with the square metres that the landowner has.
“The smart developers, when they are looking at a site, see the opportunity to unlock the value in a property where there are either air rights that can be acquired or surrounding air rights to buy to preserve the value of the asset. The smarter landowners and investors apply the right strategy early to create an air rights opportunity so they can really unlock value in that asset in the future.”
To read the full article, click here.
