Case Study: A Double Slice of Property Action in Sandbach
- Freehold industrial unit in Sandbach sold for £26,750 above asking price
- Unit bought as investment to add to new owners’ portfolio
- Rory Mack Associates retained by new owners to find a tenant
- Full rental asking price agreed on 5-year lease within 8 weeks
On occasion in property disposals, selling and leasing become intrinsically linked. This was the case with a recent property disposal in Sandbach.
In December 2017 Rory Mack Associates were instructed to dispose of the freehold interest of a modern circa 8,000 sq ft industrial unit in Sandbach, namely: Unit 2 on Norton Way, which forms part of the established Moss Lane Industrial Estate on the outskirts of Sandbach. After researching comparable evidence it was agreed to present the property to the market at an asking price of £475,000.
Within just 7 days, multiple offers for the premises had been received, illustrating the current lack of supply against the strong level of demand for industrial premises. This prompted the decision to request offers by way of informal tender and inviting interested parties to submit their ‘highest and best’ offer.
Although it is less common to receive multiple offers in the current climate, there are a growing number of cases where freehold properties attract interest from several bidders which necessitates the need for sealed bids to ensure fairness, confidentiality, and best price for the vendor.
After giving all interested parties a prescribed period of time to submit an offer, and within just 14 days of the unit being on the market, we were able to agree a sale at £501,750: a massive £26,750 above the asking price!
After the sale successfully completed in March 2018, we were subsequently advised by the new owners that they had purchased the property as an investment, to add to their portfolio and that they wanted to retain our services to find a tenant for the premises.
Within two weeks of offering the property back to the market at an asking rent of £45,000 pa we were successful in agreeing a new 5 year lease with a local business at the asking rent.
The above sale and subsequent letting of the premises generates a return on investment of just under 9%, which in the current climate is very respectable and far exceeds what could be expected if the same amount of money was deposited into a bank account.
Conclusion: Excellent result and impressive service
In less than 6 months and due to our efficiency and proactive approach to sales and lettings we successfully sold the freehold and re-let the property.
If you are looking for assistance with any commercial property freehold or leasehold disposal, please don’t hesitate to get in touch with our Agency Team who will be able to discuss your requirements and assist further.