GLOBAL LONG TERM REAL ESTATE AGREEMENTS : IN EXCESS OF 50 YEARS : TARGET 100 TO 400 YEAR LEASES

GLOBAL REAL ESTATE COMPANIES
CPP - IPE - M&G - AEW - MSCI - IPF - AMB - AVIVA - CROMWELL - UKCPT - ASHURST - GLOBAL
ADDENDUM : TRANSACTIONED VALUES : USA TERMS
100-YEAR LONG TERM PROPERTY LEASES : INTERPRETATION : EMPHYTEUTIC LEASES IN CANADA
["A 99-year lease was, under historic common law, the longest possible term of a lease of real property. It is no longer the law in most common law jurisdictions today, yet 99-year leases continue to be common as a matter of business practice and conventional wisdom."]

 EMPHYTEUTIC : PROPERTY CONCESSION (COLONIALISM) : 999-YEAR LEASES
Ontario and Quebec RailwayRailway companyEastern Ontarioand Quebec, Canada1884–2883Canadian Pacific RailwayOwners of the OQRNow owned by St. Lawrence and Hudson Railway, a subsidiary of the CPR
[A long history These types of transactions date back to the 1920s and 1930s, when a number of UK retailers began to sell and lease back their stores on long leases to raise capital from their real estate holdings. The long lease model rapidly reached the US, where, in 1936, the supermarket chain Safeway Stores started to do the same. It has continued to grow since, thanks to its popularity with real estate owner-occupiers and investors alike. In the late 1980s and early 1990s, UK high street chains such as Boots, the healthcare retailer, made widespread use of long lease transactions to unlock value from large portfolios of their premises. The model has since been adopted]

 LENGTH OF LEASES PERMITTED ON CANADA FIRST NATIONS RESERVE LANDS
["First Nations people cannot own land on reserves. Property is held in trust by councils for the government. However, some communities have a limited form of individual property ownership known as a certificate of possession.Jun 20, 2013"] ... NOTE : SFU ANALYSIS : "Having well-defined and strongly protected rights to personal property is widely recognized to be a key element in reducing poverty and improving standards of living.1 The link between a lack of prosperity and the absence of property rights may be particularly salient in indigenous communities around the world where the notion of private land rights is frequently absent (De Soto, 2001; Flanagan and Alcantara, 2003; Anderson and Parker, 2009). Canada’s First Nations are no exception: reserve land is not owned by individuals but held in trust for the benefit of band members, and many observers have pointed to the communal nature of reserve land as a major contributor to the economic challenges faced by First Nation communities.2 Indeed, the concern of weak property rights on reserve has motivated calls from academics (Alcantara, 2003; Baxter and Trebilcock, 2009; Flanagan et al., 2010; Flanagan and Beauregard, 2013) and policy proposals, such as the First Nations Property Ownership Initiative, to reform the current land tenure regime. The absence of fee simple property rights does not imply that all land is held communally or in informal customary holdings, however. The Indian Act (R.S.C., 1985), which is the principal statute defining the relations between First Nations and the Federal government, contains several provisions for forms of land tenure that grant private property rights over land. First, bands can formally allocate individual landholdings to their members. These landholdings are termed lawful possessions and evidenced by “Certificates of Possession”. Second, bands can issue permits or designate land to be leased out. Although these tenure regimes are not the same as fee simple, they do create individual interests over reserve land which are secure, excludable, and transferable. The purpose of this paper is to empirically investigate the extent to which creation of these private property rights on First Nation reserve lands has spurred economic activity. There are several channels through which private property rights can promote investment and affect economic outcomes (De Soto, 2001; Besley and Ghatak, 2010a). First, secure property rights reduce expropriation risk as well as the costs of protecting property. Second, well-defined property rights facilitate the use of assets by those who can do so most productively through trade or rental. Finally, property rights enable borrowers to pledge their assets as collateral, and thereby relax credit constraints. This last mechanism is at the core of de Soto’s argument in favor of individuals property rights. De Soto viewed assets that could not easily be bought, sold, valued or used an investment as “dead capital” that fails to create value for the poor." ... See Also : Woodward & Company Opinion
SUMMARY : MAXIMUM LEASE TERMS ON FIRST NATIONS RESERVES : SUMMARY
INNAC 600 PAGE LAND LEASE MANUAL : DEVELOPMENT PROCESS ON FN RESERVES : LAND INTEREST ON FN LANDS
KWIKWETLAM FIRST NATION : BUSINESS PARK : $1.7M - $2.5 M PER ACRE
"A custom allotment or holding is a right to occupy reserve land which is granted to an individual by a resolution of a First Nation council, or pursuant to some form of written or unwritten band custom. However, the First Nation does not request approval or registration of the custom allotment with the Minister, and a formal CP is not issued. Because there is no approval or registration by the Minister, a custom allotment is not considered lawful possession under the Indian Act, or under Canadian law, and is not treated as a legal interest in land. Rights of individual possession in this manner are based on mutual agreement between Council and the individual member. "
INDIAN ACT TERMS REGARDING LEASES OF LANDS
LAND MANAGEMENT : PERMITS YEARS PROVISIONS : OPTIONAL 97-YEARS
"The Minister issues leases to non-band members. ... The Minister may lease land in lawful possession of a band member to a third party. Such a lease is sometimes called a locatee lease. The Indian Act does not specifically provide for First Nation input into the issuance of locatee leases.Jul 24, 2013"

["William Blackstone (1723–1780, of Commentaries on the Laws of England fame) states that a lease was formerly limited to 40 years, although much longer leases (for 300 years, or 1000 years) were in use by the time of Edward III.[3] The 40-year limit was based on the unreliable text "The Mirror of Justices" (book 2, chapter 27)."]

AMBERDEEN STANDARD : LONG TERM LEASE COMMENTARIES : "Achieving a steady and reliable source of long-term income is a growing challenge for many investors who are trying to meet future liabilities. Bond yields remain close to all-time lows and equities alone can’t provide a solution for liability-driven investors who are looking for consistent returns. As a result, investors are increasingly looking for real assets that are linked to inflation. Property has a vital role to play in helping investors meet their income requirements.
What do we mean by long-income property? The term refers to properties that are leased to tenants on a longer-than-average lease – typically a minimum of 10 to 15 years, depending on the market. Since leases are contractual agreements, the owner has the confidence that the tenant will make regular rental payments over the course of the lease and can plan accordingly. Government offices, supermarkets and universities are some of the tenants who would typically be interested in taking on a long lease. And since they are normally considered to be extremely reliable tenants, landlords who are trying to maximise their long-term income stream would be keen to secure this kind of lease.
While opportunities for long leases are still available, they can be difficult to source as owners are normally reluctant to sell. According to Real Capital Analytics, only €20 billion of long-leased assets were transacted over the last 10 years (to June 2018) in Europe, although we suspect that the true volume will be significantly higher as many of these deals go under the radar. Given the structural and technological changes that are affecting offices and retail in particular, investors need to think more broadly about property sectors. Alternative sectors, such as hotels, student and senior living accommodation, medical centres, car parks, and leisure centres can provide a different source of long income.
The benefits of investing in long-income assets that are linked to inflation are well known: a long lease means that they can provide a reliable and steady income over a long period of time; research shows that alternative assets have been less volatile than the main commercial real estate sectors over recent years; and rents are linked to inflation, which provide protection against eroding values. Importantly, long-income assets can also provide genuine diversification in a portfolio. This is particularly the case with alternative sectors as they don’t have economic growth as their key driver of demand. Trends in alternative sectors tend to be more influenced by demographics or structural themes, which helps to enhance diversification. 
Long-income property has demonstrated strong performance characteristics, particularly since the global financial crisis.
Long-income property has demonstrated strong performance characteristics, particularly since the global financial crisis. In the UK, there are 11 long-lease funds as defined by IPD/MSCI. Between September 2010 and September 2017, annual fund-level returns averaged 9.9% across all balanced funds and 9.2% across long-lease funds. Furthermore, the range of returns was also significant. The difference between the highest and lowest annual return in the IPD/MSCI All Balanced Fund Index is 22.9%. For the long-income group, the range is less than half that at just 10.8%. This provides strong evidence that certainty of income has played a key role in driving more stable total return performance.
Investing in long-income assets produces a different set of risks to shorter-duration products. There is a greater risk of over-renting (where a property is let at a rent greater than the current open market rent), which would damage the long-term value of an asset if not appropriately managed. Tenant risk also increases as the owner needs to be certain that their tenant has long-term plans to stay in the property and that they will be able to pay their rent. Long-income properties are also vulnerable to obsolescence (wear and tear as well as becoming outdated or not fit for purpose) over the course of the lease. And structural shifts in demand for certain property types, such as the current decline in demand for some types of retail property in favour of industrials, can affect the long-term value of assets.
That said, buildings have a life cycle, from land zoning and planning applications through to demolition and change of use. Investors can participate throughout the life cycle, timing their investment to suit their needs. The level of risk associated with each stage of the asset cycle is broad and investors can either diversify across the risk spectrum or target certain periods.
For long-term strategies, it is important to identify property types that have the right performance characteristics to produce robust, long-term income. We believe the traditional commercial sectors should form part of a long-income portfolio, supported by the additional diversification and income gained from an allocation to alternative sectors."
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