the facts

105 - 107
MURPHY STREET

RICHMOND

Sold 105-107 Murphy Street Richmond TCI - An in depth look behind the scenes of the campaign. We'll explain the pros, the cons, the challenges and the reveal!

THE PROS

Exceptional three street frontage land holding
Long term lease ( 10 years with two further 5 year options) to one of Australia’s best – Kennards Hire
Recently renovated in 2022 on new Lease execution

THE CONS

The property has a substation on the River Street frontage – impacting the potential of a future development
Slightly lower than market rental tied into long lease term

105-107 Murphy Street Richmond TCI Sale Sold

THE CHALLENGES

While the long lease created security from an investment perspective – it also meant the property could not be sold to an owner occupier on land/building rates – which was the highest and best outcome
From an investment perspective, it is likely the market would expect the property to sell for a circa 5% return, which equates to circa $3.25m
The land/building rate was significantly higher and the key was to emphasise on the long term land bank value of the asset, while having secured long term rental income
The Lease contained a first right of refusal for the tenant, which also restricted the type of public campaign we could run

THE REVEAL

To satisfy the requirement of the first right of refusal of the Lease and the request of the Vendor to hold an ‘off market’ campaign, we sourced buyers through our network and held a boardroom Auction. TCI sold the property to an investor for $4,640,000 – which equated a 3.5% return
Market expectation was approximately 5%
Final result being 43% above market expectations

the facts

market expectation

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RETURN

RESULT

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RETURN

difference

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%

higher

Campaign performance

PERCENTAGE

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market average

RESULT

the facts

105 - 107
MURPHY STREET

RICHMOND

THE PROS

THE CONS

THE CHALLENGES

THE REVEAL

the facts

market expectation

RETURN

RETURN

higher

Campaign performance

PERCENTAGE

PERCENTAGE

RATE

market average

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

Contact

Address

Phone

Email

Menu

Social

the facts

105 - 107MURPHY STREET

RICHMOND

THE PROS

THE CONS

THE CHALLENGES

THE REVEAL

the facts

market expectation

RETURN

RETURN

higher

Campaign performance

PERCENTAGE

PERCENTAGE

RATE

market average

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

sold 105-107 MURPHY STREET

Contact

Address

Phone

Email

Menu

Social

105 - 107
MURPHY STREET