Charter Keck Cramer for Telstra
Development Site
Sale
$6,500,000
TGC has worked with several clientele who now are employed with Charter Keck Cramer and have done business for them in the past.
TGC pulled apart the rational for each purchaser group likely to be interested in acquiring the property. The planning was not overly favourable for such a large site. We conducted an analysis on the property under current zoning, alternative higher density and alternative use – childcare, religious etc. As part of this we even went to the length of calling each childcare operator in the area assessing day rates and availability. This is an example of how it allowed us to speak confidently the likely hood of this particular purchasing group appetite for the property.
A cost-effective, well directed and yet heavily effective campaign saw well over 170 enquiries over the course of the marketing campaign, from listing portals, our existing database, signage and directly calling developers currently constructing within the Canada Bay precinct. A focus on the potential of the site, its proximity to the Five Dock Metro Station and the surrounding suburbia saw the offering presented in its best light. Rather than flood all portals and expend capital needlessly a targeted campaign mostly over realcommercial and development ready garnered the bulk of online organic enquiry. A large amount of time was allocated to calling parties on our direct target list.
Telstra had set inits yearly budget a price for the disposal of the asset in the last half of the2022 calendar year. With a multitude of interest rate rises and a shift in themarket to a more subdued climate, the client was concerned that their price wasno longer achievable. TGC selling agents Paul and John utilised the stronginterest from multiple parties to extract the best possible price from the roomon auction day. Although there was plenty of interest in the property there waslimited bidding under auction conditions. Within an hour post auction we were able to increase the price by afurther $250,000 on suitable terms which was well beyond the vendor’s expectationsgiven the market conditions.
Telephone exchangesare an incredibly unique property with a limited tenant pool and generallylower than average returns – the focus is on development potential in future. The3 year lease back to Telstra was both a help and a hinderance. Majority ofdevelopers wanted to DA, build and complete within 18-24 months so this rulednumerous parties out. On the other hand the lease to an ASX listed companyallowed easy finance. The end purchaser was happy to accepted a low investmentreturn and take their time in lodging a suitable DA application. The timing ofthe business case for the purpose to marketing and sell the property wasconsiderably stronger then when we actually sold the asset, including 6interest rate hikes. This meant, a focus needed to be made on ensuring thebuyer understood more about the potential of the property and return oninvestment over the medium to long term.
