Ray White Commercial Canberra successfully sold this 1,500m2 redevelopment block at 28 Mort Street Braddon, in May 2011.
The sale process was extremely long, with the vendor being the long standing operator of the mechanical workshop previously on the site and the buyer not wanting settlement until 12 months after agreeing to terms.
The final negotiation resulted in buyer and seller entering into a Put and Call contract, where each party could force the other into the sale at designated time 12 months after they agreed to terms. At the conclusion of the prescribed 12 month timeframe the parties entered into a binding contract for sale and the subsequently settled 45 days later.
Points of Note:
1. The final price on this sale represented a per unit value of close to $100,000, which is the highest price ever recorded in Canberra for a non water front site.
2. There was only one party who was interested at the vendor’s price level, so negotiations were drawn out and difficult. The seller conceded on some settlement terms to keep the price at the higher level.
3. The buyer paid the betterment tax for the site of approximately $500,000.
|Type of Property:||Mechanical workshop sold as a residential redevelopment site|
|Product Mix:||Ground floor retail space, first floor office, 5 floors of residential apartments|
|Sale Method:||Private Treaty – Off Market|
|Sale Price:||$5,000,000 (plus betterment tax)|