the facts

THE SWAN STREET COLLECTION PART 1

362 - 368 SWAN STREET

RICHMOND

Sold 362-368 Swan 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

Short term lease allowing future flexibility
Security of well known sitting tenant, who wanted to remain in the property
Approved C191 Amendment, rezoning the site from C2 to C1
Minimal to no residential interface, providing excellent development height capabilities
Market knowledge of lease to Australia Post as anchor tenant in nearby development site – terms being
- 10 Year Lease
- Circa 32,500m²
- $650 per m²

THE CONS

TCI sold the property in February 2020, with a due diligence period, together with 382 – 388 & 388 – 390 Swan Street for $59,000,000 – the sale did not proceed due to Covid
There was market knowledge of said sale and terms. During lockdown, multiples of agents began contacting the Vendor making offers and offering the site to multiple buyers. This created a mixed message to the market
The property is in a “L” shape with approximately 2,360m² fronting Swan Street and the remaining 748m² fronting a neighbouring site, with approved plans for an office development
As a stand alone sale, the potential of the property was greatly reduced, without cooperation from the neighbouring owner, who had the balance of the Swan Street frontage

The Facts Sale The Swan Street Collection Part 1 362-368 Swan Street Richmond Real Estate Richmond Development Richmonmd Retail Commercial Real Estate TCI

Sale The Swan Street Collection Part 1 362-368 Swan Street Richmond Real Estate Richmond Development Richmonmd Retail Commercial Real Estate TCI

THE CHALLENGES

The neighbouring owner did not want to sell their property separately or as an amalgamation with our client – nor would they participate in a Joint Venture agreement with out client
The neighbouring owner was willing to hold their property for much longer than our client
The only way to fully maximise the price, was to sell to the neighbour or to sell to another party, who would Joint Venture with the neighbour
As the neighbour was interested in purchasing this property, they could refuse to work with any other party, which in effect meant they could largely control who the Purchaser was

THE REVEAL

After an extensive and six week long negotiation process, TCI sold the property to the neighbour, for $45,500,000 – which equated to $14,640 per m²
Market expectation was approximately $35,000,000
Final result being 30% above market expectations

the facts

market expectation

$

0

Million

RESULT

$

0

Million

difference

0

%

higher

Campaign performance

MILLION

PRICE

market EXPECTATION

RESULT

the facts

THE SWAN STREET COLLECTION PART 1

362 - 368 SWAN STREET

RICHMOND

THE PROS

THE CONS

THE CHALLENGES

THE REVEAL

the facts

market expectation

Million

Million

higher

Campaign performance

MILLION

MILLION

PRICE

market EXPECTATION

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

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