FAQ (Frequently Asked Questions)

Why do people sell the small portion of leased land under a tower to Clearspan?
People sell for a wide variety of reasons, but like selling any property, landowners consider that the proceeds of the sale can be better utilised for another purpose. The main things which sale money is used for is - to buy other property which is in line with the owner’s core business, to reinvest in upgrading an existing property or to reduce bank debt.

 

When I sell the small portion of land to Clearspan, does it restrict what I can do with my property in the future?
Clearspan’s purchase agreement reflects the existing terms which you are already bound to under the conditions of the lease. This is required so that Clearspan can continue to offer the Telco the same benefits under the lease which you currently have in place.

 

Do I have to pay money back to Clearspan if the Telco terminates the lease in the future?
No. Even though Clearspan is paying a large price for a small portion of land, the risk of long term tenure sits 100% with Clearspan.

 

Is my remaining portion of land worth less when I sell the small portion of land under the tower to Clearspan?
The answer to this question can vary depending upon the location, nature and size of the original portion of land, but in almost all circumstances land owners consider that they can actually sell the leased portion of land to Clearspan with minimal to no effect on the original land value.

 

Why does Clearspan offer a significant Capital value for the small portion of land?
Clearspan is effectively taking a calculated risk, based on their industry experience that the tower will remain on the land into the future. This allows Clearspan to place a Capital value on the land today which represents future cash flows off the site.

 

If I renew my lease with the Telco, is the site then more valuable to Clearspan?
Generally ‘no’, the value which Clearspan will place of the site is likely to be less. This is because Clearspan have their own special requirements which they will negotiate into a new telecommunications lease. These are not necessarily related to the annual rental income.

 

What kind of arrangements do Clearspan offer?
Clearspan has three main options, these being Utility Subdivision, Tenants in Common and Concurrent Lease. These can be discussed directly with you once your site has been reviewed and we will recommend the most viable option.

 

If I ask Clearspan to prepare a Purchase Price Agreement, is this a binding document?
Clearspan will prepare an estimated Purchase Price Agreement (PPA) for you, which is not a binding document. It is simply an offer for discussion with you.  If it is accepted in principle, then Clearspan will prepare a formal Agreement for Sale and Purchase (ASP).

 

Who covers the cost of preparing the formal Agreement for Sale and Purchase documentation?
The costs of preparing all legal documentation is met by Clearspan.

 

What costs do I have to cover in the transaction?
Generally the only costs which you will have to cover will be your private legal costs associated with your lawyer reviewing the sale documents, new titles and executing the agreement.

 

How long does the settlement process take?
This will vary depending upon the type of ownership arrangement decided on between the parties, but for the most common method, it takes between 2 and 4 months from the signing of the ASP.

 

Do we have to pay tax on the sale proceeds?
We encourage Vendors to check this with their accountants, but we understand that most Vendors do not have to pay tax (other than GST which is generally neutral if you are GST registered).

 

Is Clearspan actually buying the tower?
No. The Telco owns the tower infrastructure, Clearspan is securing the rights to the small portion of land under the tower that is leased to the Telco.

 

Is Clearspan affiliated with a major Telco?
No, Clearspan is a 100% privately owned and independent NZ company.