Sold for $12.05m (including Lease Variation Charge (‘Betterment tax’) in November 2013.

Ray White Commercial Canberra was jointly engaged by the owner of the site to run a open, public marketing campaign to ensure the broadest possible range of potential buyers were informed about the site. The site was sold through an expressions of interest process.

The high profile location of the site meant interest would be a strong and a sale process which created competition between buyers was necessary.

After commencing with a known potential buyer market of 40 groups, plus those that enquired through the marketing we came down to 8 groups who submitted offers purchase the site.

The best of the first 8 offers hit the nominal “reserve” price, at which point we issued sales contracts to all parties and requested they put forward their best and final offer in the form of an executed sale contract.

The conclusion was 5 submitted signed contracts with the highest being $1.5m above the original “reserve”.

Points of Note:
1. The EOI with a closing date and subsequent tender process created significant competition between the buyers and a binding signed contract was the final result.
2. The sale process allowed us to seek initial Expressions of Interest, then ask all parties for their final offer. This created a price which was $1.5m above the initial EOI price.
3. The public and open marketing process gave buyers the comfort that the seller was committed to the sale process and they then committed time and money to completing full feasibility on the site.

 

Sales Analysis*
Type of Property:CZ2 site, up to 6 stories, approx. 150 units
Land Size:7,056m²*
Sale Method:Expressions of Interest, with subsequent tender process
Total Registered Enquiries:34
Final Negotiators:8
Marketing Spend:$12,000