Ray White Commercial Canberra was engaged by receivers to sell the “Mortgagee in Possession” Aalto Apartment site in Phillip. the sale was completed via a formal Tender process.
The property is complex in nature, with the owner being in receivership and a complicated corporate structure overseeing the sale. The site was DA approved for 278 residential units on a land hold of approx 7,000m².
The marketing process used local and national advertising mediums and generated enquiry as per the graph below. In total there were 48 enquiries, but by the end of the process there were only 4 serious buyers.
Only 2 of those 4 interested parties submitted offers which were reasonably considered by the vendor but neither reached a level the vendor was seeking. A final round of negotiation produced a increase in the best offer, of $150,000 and this resulted in the vendor accepting and exchanging contracts.
The total marketing spend on this project was $29,865. The chart below shows the split of enquiry sources
Points of Note:
1. The final purchaser was the most likely buyer from commencement of marketing due to their recent purchase of the neighboring site. We were able to use this as leverage to obtain the highest price from them.
2. The buyer paid the applicable Betterment Tax of $3m, so this amount was subtracted from the contract price.