the facts

89
kingsway

glen waverley

Sold 89 Kingsway Glen Waverley 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

One of the best spots on Kingway, Glen Waverley
Security in leasehold acquisition, with circa 18 years left on lease term
Corner location
Existing licensed Restaurant/Café with permit for 60 Seats + 30 Seats footpath trading
Presented exceptionally – with full renovation from top to bottom featuring
- New kitchen facilites
- New bar
- Renovated toilets
- Recently painted
- Polished concrete and timber floors
- Exposed bricks

THE CONS

This was just a sale of a leasehold i.e. the tenure could have been circa 18 years at maximum
There was a value in the freeholds on Kingsway, as there was substantial cost in obtaining a permit from council – this was based on the number of permitted seats
However, it was known council was removing this cost in the future and greatly reduced the value of the leasehold
The leasehold was not operational at the time i.e. the business had closed and the market was provided no goodwill
In effect, we were selling the fixtures and fittings, which virtually all buyers had limited to no use for, as they wanted to undertake their own fitout and and equipment
The Glen Shopping Center, located on the same strip, was under major renovations at the time – this caused Kingsway to lose some of its appeal

The Facts Lease 89 Kingsway Glen Waverley Retail Glen Waverley Real Estate Commercial Real Estate TCI

THE CHALLENGES

There was market knowledge of the removal of the seating permit cost
The marketing campaign simply tried to focus on the quality of the property/fit out and the exclusivity of the corner location
To highlight the quality and location, circa 3 times the normal number of photos were used in the campaign
The market knowledge of the business being closed, which led them to the belief the business was not successful – this was reflected in the offers received
The price was high – leading virtually all potential buyers to walk away after initial enquiry
TCI was acting on behalf of the Tenant only, not the Landlord – this meant not only did we need to secure a sale with an acceptable price, but to an Assignee, with the same, if not better, security as the existing Tenant – which was exceptional already

THE REVEAL

After a period of time on market, TCI sold the leasehold to a multinational tenant for $1,100,000 – this also included our client retaining a number of the items in their fit out
The next best and only offer received, was circa $200,000
Final result being 550% above market expectations

the facts

market expectation

$

0

THOUSAND

RESULT

$

0

MILLION

difference

0

%

higher

Campaign performance

MILLION (M)

percentage (%)

RETURN

market average

RESULT

the facts

89
kingsway

glen waverley

THE PROS

THE CONS

THE CHALLENGES

THE REVEAL

the facts

market expectation

THOUSAND

MILLION

higher

Campaign performance

MILLION (M)

percentage (%)

RETURN

market average

89 Kingsway

89 Kingsway

sold 89 kingsway

sold 89 kingsway

sold 89 kingsway

sold 89 kingsway

sold 89 kingsway

sold 89 kingsway

sold 89 kingsway

sold 89 kingsway

sold 89 kingsway

sold 89 kingsway

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