Development Management Agreements: a win-win for everybody

Do you currently have a substantial portion of your family’s wealth tied up in real property assets that are not generating the income that you had once hoped?

Are you looking to boost your superannuation or cash flow position leading into retirement?

It is becoming increasingly common for owners of substantial rural or semi-rural land parcels, particularly on the fringes of high priced capital cities, to be entering into development arrangements with experienced and well-resourced developers in order to subdivide and on sell rural land parcels in a cost effective and timely manner that would not have been possible if the landowner were to undertake the project themselves.

This type of arrangement is becoming particularly popular in metropolitan centres where “urban sprawl” is rife, and young first homebuyers are being forced to the more affordable outer suburbs of cities in order to secure their first homes.

The benefits of a Development Management Agreement (DMA) mean that landowners who have little to no property development experience, and also have minimal working capital available to cover the upfront costs of undertaking such a development, can outsource these responsibilities to a party who has both the financial resources to undertake the initial stages of the development, and also has the experience of working closely with local councils, planners, surveyors and marketing agents in order to speedily develop the land and bring it to market

The results? The landowner is able to develop their previously stagnating asset without investing significant upfront costs and time into the project, while the developer is able to use their financial resources, skill set and professional network to develop a parcel of land which they are not fortunate enough to own themselves. The outcomes therefore of a well drafted DMA mean that both parties are able to pool their resources together in order to bring about a mutually beneficial arrangement for both parties to the agreement.

If it sounds like this type of commercial arrangement would suit your circumstances, please contact our office to make an appointment with one of our experienced property and commercial lawyers to discuss your options. Our lawyers have extensive experience working alongside both landowners and developers in achieving cost effective and timely results for both parties to a Development Management Agreement.

Contact Jacob Powell

p: +61 2 6206 1300 | e:


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