15-19 Clarence Street Burwood

HillPDA was engaged by the owners of 15-19 Clarence Street Burwood to undertake a highest and best use assessment, which subsequently led to divestment advisory.

In the highest and best use assessment HillDA advised on the sites planning and development options available including the use of Voluntary Planning Agreements to get bonus floor space in a redevelopment scenario. The second phase of this project was divestment advisory. This phase involved:

• Competitive tender and selection process for the engagement of a sales agent
• Input into the Information Memorandum
• Ongoing divestment advisory advice throughout the sales campaign
• Continual management of the EOI’s in both the first and second round
• Financial and qualitative assessment of all purchase offers.

Our value add

• The project team was multi-disciplinary which included town planners, valuations, land economists, market research, legal, accountancy and sales agents
• The detailed highest and best use assessment assisted the owners in deciding to divest the asset
• HillPDA’s multi-disciplinary team was able to quickly answer complex divestment questions from the vendor, purchasers and agents
• HillPDA was able to quickly collate responses and evaluate them in terms of financial offer and comment on other qualitative benefits i.e. contract sales terms

Outcome

• 13 unconditional offers were received in the first round, and 6 unconditional offers with no due diligence period was received in the second round of EOI’s
• The site was sold under a put/ call option with extremely favorable terms which included 20% deposit paid in two months of exchange and very short option period
• HillPDA saved the client in agent fees through our competitive agent tender process
• HillPDA helped achieve an additional revenue for the vendor. This revenue was over the estimated market value in a declining residential market.

Services:

• Strategic asset planning
• Highest and best Use
• Market research
• Sales agent engagement
• Divestment EOI assessment
• Financial analysis
• Divestment advisory
• Development advisory

Client: Private
Project date: 2016 – 2018

For more information, contact Virginia Phillips, Associate