Farm Online

Australian landowners benefitting from lump sum payments with RELA

Landowners are now able to bring forward their future lease payments into one lump sum payment today, thanks to RELA Advantage. Picture supplied
Landowners are now able to bring forward their future lease payments into one lump sum payment today, thanks to RELA Advantage. Picture supplied

This is branded content for RELA

We recently reported about a fast growing Australian business enabling farmers to use their land to access a life-changing cash injection. The response to the article was extraordinary. Almost 100 farmers across the country have since reached out to RELA to better understand how they can participate in what is proving to be a game changer for regional and rural landowners.

Landowners with renewable energy farms on their land are in a fortunate position for two reasons. Firstly, they are positively contributing to a net zero emissions future, with every additional renewable farm providing clean energy to the grid.

Secondly, landowners are now able to convert their annual lease payments into one lump sum payment.

Landowners are now able to bring forward their future lease payments into one lump sum payment today, removing the risk, uncertainty and delay associated with having to wait 20 plus years to receive their income.

Landowners are realising that by extracting their money out of a depreciating asset now (being the lease), and investing it into appreciating assets such as land, property or stocks, they could be in a much better financial position in the future.

The upfront receipt of funds also allows landowners to pay down debt amid rising loan repayments, invest into the growth and expansion of their business, or simply retire.

The RELA Advantage lease prepayment has proven to be a game changer for many landowners in an environment where rising interest rates show no sign of easing, where borrowing funds is becoming far more difficult and costly, and where cost of living and operating pressures are becoming increasingly difficult to manage.

Queensland farmers Belinda and Cameron who worked with RELA to receive the RELA Advantage lease prepayment of their solar farm said the decision was a "no brainer" for them.

"Rising interest rates equates to rising debt repayments and falling asset prices, and with no end in sight, the RELA Advantage lease prepayment allows us to navigate the challenges by paying down, and using the cash left over to buy new land as opportunities arise," said Belinda.

"Through RELA we're able to pull money out of the lease, a depreciating asset, and put it straight into nearby land, which, based on history, will go up three to four times in value over the same period as the lease," said Cameron.

"We'll be far better off in 25 years and that's what matters. We're thinking about our children, and this prepayment allows us to set them up nicely."

With reputable companies such as Twyman Pastoral among the long list of landowners transacting with RELA, it's no surprise that the company is experiencing such rapid growth.

"The RELA Advantage lease prepayment has clearly struck a chord. We're transacting with landowners right across the country" said RELA director, Eran Rimmer.

"Landowners are astute business people whose families have successfully run their farming operations across generations. They, more than anyone, know that you can't predict the future, and that one dollar today is worth multiples more than one dollar in 20 plus years.

"So if they are able to remove the risk associated with time & access a huge life changing lump sum payment today, and then put that money to good use, growing their families wealth, then why wouldn't they?" said Eran.

RELA is delivering a solution that is clearly resonating with rural and regional Australia. It's great to see an Australian company injecting funds into our regional communities.

Here are the key benefits of the RELA Advantage lease prepayment:

  1. Landowners don't wait 20+ years for income that may never come. RELA prepays landowners the fair value of their renewable energy ground lease rent upfront. It's not a loan.
  2. Pay down your debts and remove your personal liabilities. With rising interest rates, use RELA Advantage to pay down your debt, avoid higher debt repayments/potential default, and remove the stress.
  3. Build your future the way you want. With the RELA Advantage lease prepayment you could build your wealth, business, or landholding.
  4. All your rights as a landowner are protected. You continue to own your land and benefit from all capital growth and the agricultural productivity. Your lease with the wind/solar farm also stays exactly as it is.
  5. Enhance your family's lifestyle. Whether you build a new family home, renovate an existing one, buy a beach house, or an apartment in the city, all of which will appreciate in value, you and your family can enjoy an enhanced lifestyle today.

If you are a landowner interested in a RELA Advantage lease prepayment, contact RELA today to see if your lease qualifies for a life changing upfront payment: www.rela.com.au

This is branded content for RELA