Delivering memorable service and enduring value for our clients
Client: Cheoy Lee Yachts Pty Ltd
Sale price: $9,500,000
Yield: 7.7%
Total area: 6,978 sqm* (Site Area) 421sqm* NLA
Asset type: Large Format Retail Investment
Challenge
The major tenant’s lease had expired, and a smaller footprint had been requested within the building. Substantial costs were associated with splitting up the lease areas, and additional fire cladding regulation requirements had identified that the building’s upper level existing long-term tenant could no longer occupy the building without cladding rectification works being completed. The major costs associated, and tenant lease uncertainty was a source of concern for the owner, and he was reluctant to invest more capital into the building at the time.
Strategy
Complexities associated with the building were likely to result in a drawn-out sale process and the seller required a shorter-term outcome, Auction was recommended, and the strategy was to:
- Disclose all cladding requirements and tenant requirements to prospective buyers.
- Contractor quotes were made available for all issues associated with the cladding rectification requirements and the splitting of lease areas to fulfil the major tenants reduced footprint requirement
- Our leasing division provided detailed advice over lease rates for the area and an overview of current tenant demand, providing a level of comfort to prospective buyers
- Indicative fully leased income estimates were provided to showcase the buildings potential income opportunities upon works completion.
Results
Throughout the campaign the property attracted over 40 enquiries with multiple interested parties vying for the property prior to auction. On auction day, there were multiple bidders with the final price exceeded the client’s expectations and a successful settlement being achieved within 60 days.
Testimonial
"I’d just like to congratulate both Pat Cavanagh and Steven King on the professional manner in which they conducted themselves during the sale of our property. The sale campaign was managed with the utmost professionalism and diligence, providing us with a variety of interested parties. Your tailored campaign strategy combined with your consistent determination and detailed updates throughout the entire process ultimately delivered a sale price above our expectations."
Adrian Alle
Cheoy Lee Yachts Pty Ltd
