the facts

the bridge road trinity

300 - 302, 304 & 306 bridge road

RICHMOND

Sold 300-306 Bridge Road 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

Two street frontages of
- 25.7m to Spencer Place
- 24.7m to Bridge Road
Located on arguably the best part of Bridge Road – opposite the Town Hall, where the best lifestyle operators are located
Mid term development potential with development clauses to come into effect in just under 5 years time

THE CONS

One of these properties had recently become vacant – the property was priced according to the development potential, which meant the rent potential was compromised given the property would need to be leased for a term to match the development clauses in just under 5 years
City of Yarra had just released a Bridge Road Structure plan restricting the property to a maximum height of 6 storeys
Sensitive residential interface at the rear, caused a restriction on height potential – hence the maximum height overlay

The Facts Sale Bridge Road Trinity 300 - 302, 304 & 306 Bridge Road Richmond Real Estate Richmond Retail Richmond Investment Commercial Real Estate TCI 300-306 Bridge Road

Sale Bridge Road Trinity 300 - 302, 304 & 306 Bridge Road Richmond Real Estate Richmond Retail Richmond Investment Commercial Real Estate TCI

THE CHALLENGES

Campaign commenced 3 March 2020 – just weeks before the first Covid lockdown
The market was in a state of panic, with an unprecedented, once in a lifetime/generation pandemic underway
The media was all doom and gloom on a daily basis – creating fear and uncertaintity
Australia was in their first recession since the early 1990’s
The market had no future certainty – would restrictions/lockdown come back? What was the end value of developments? There was no historical data to support any assumptions
Interested parties were trying to purchase the property for circa 4.5% returns

THE REVEAL

After an long campaign due to the initial Covid lockdown, TCI sold the property for $7,558,00,000 – which equated to a 2.5% return of the current rent, or a 3.1% return on the rent potential fully leased
Market expectation was circa 4.5% return at the time, with parties making offers based on market conditions
Final result being 68% above market expectations

the facts

market expectation

0

%

RETURN

RESULT

0

%

RETURN

difference

0

%

higher

Campaign performance

PERCENTAGE

percentage

RETURN

market average

RESULT

the facts

the bridge road trinity

300 - 302, 304 & 306 bridge road

RICHMOND

THE PROS

THE CONS

THE CHALLENGES

THE REVEAL

the facts

market expectation

RETURN

RETURN

higher

Campaign performance

PERCENTAGE

percentage

RETURN

market average

Sold 300-306 Bridge Road

Sold 300-306 Bridge Road

Sold 300-306 Bridge Road

Sold 300-306 Bridge Road

Sold 300-306 Bridge Road

Sold 300-306 Bridge Road

Sold 300-306 Bridge Road

Sold 300-306 Bridge Road

Sold 300-306 Bridge Road

Sold 300-306 Bridge Road

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