Sold for $17.7m (including Lease Variation Charge (‘Betterment tax’)
Ray White Commercial Canberra was engaged by the owner of 9-11 Irving Street, to take the 23,500m²* site to market for sale through an “off market” select expressions of interest process.
The off market sale process was recommended as there was only a small and known number of potential purchasers for a site of this size.
The property is complex in nature, with a sitting tenant with a 3 year of lease tail and a Crown Lease which allows for redevelopment with up to 500 residential units and 2,000 of non retail commercial space.
After commencing with a potential buyer market of 30 groups, we came down to a group of 5 who were willing to place an offer for the site.
We requested that each group document their offer by a specified time frame.
The conclusion was 3 written offers were confidentially provided and two of those offers were at a level where further negotiation was warranted, as neither initial offer met the seller’s expectations. One party was subsequently more motivated than the other and the final price achieved was over $2.5m greater than the next highest offer.
Points of Note:
1. Our trusted relationship with the buyer of the site was the primary reason we were able to induce them to offer over $2.5m more than the 2nd best offer.
2. The buyer paid the applicable Betterment Tax of $3.7m, so this amount was subtracted from the contract price.
3. The sale process and subsequent negotiation period allowed us to achieve a significant gap between the highest and second highest offer.
|Type of Property:||Cz2 site, with up to 500 units allowed|
|Sale Method:||Expressions of Interest, with subsequent offers to purchase|
|Total Registered Enquiries:||30|