The sale of two commercial interests within the same property demonstrate how the private investor sector has now fully embraced online technology, with the proven benefits to both buyers and sellers.
Niche agency Singer Vielle offered a freehold ground rent investment, Skyline Plaza, Commercial Road let for a further 96 years at an initial rent of £30,000 per annum. At the same time, the agency offered a long sub-leasehold interest within the same property, let short-term to Bathstore at £90,000 per annum. Both were listed at singerviellesales.com.
“We were conscious that the investments were very different in nature so were offered as separate investments even though within the same property” Neil Singer, Singer Vielle
The properties were offered with the functionality of clicktopurchase® whereby legal offers to treat are submitted online either by private treaty, best offers or real time auction.
“In recognition of the strong interest in the investments, we chose to close the sale by an online clicktopurchase® best offers on 25 th September at 11:00 am. We selected not to sell by online real time auction since this would have prevented bidders participating who were only seeking to purchase both interests.”
The flexibility to opt to close the sale by online clicktopurchase® best offers and the competition thereby created produced the following impressive results:
16 online clicktopurchase® private treaty offers to treat submitted, totalling consideration in excess of £20m
Ground rent sold for a yield sub 3%
Leasehold investment to Bathstore sold sub 4.5%
Whereas the traditional agency model of “best offers” is open to exploitation as bidders and agents will hold back until after a deadline in the hope of exerting pressure for some inside information, the online technology means the platform is shut from the deadline and no offers can then be submitted. For the seller it ensures that offers received are genuine with true commitment at the maximum levels; for buyers they can rest assured that any offer cannot be “used” against them, providing true fairness, transparency and accountability.
“The fact that so many offers were submitted proves how the investors are willing to participate in such a fair process. Under bidders may be disappointed that they were unable to purchase but we didn’t receive any complaints and all accepted the transparency and fairness of the approach which encourages bidders to engage” Neil Singer, Singer Vielle
The sales were conducted upon behalf of the global asset management group, The Carlyle Group, and Generation Estates.
“We had never used anything like clicktopurchase® before when selling. The ease of use, speed and professionalism it brought to the selling process was a delight. Above all, it helped deliver an impressive result and with certainty” Nicky Barker, The Carlyle Group
“This is the second time that we have worked with Singer Vielle selling a property in London by clicktopurchase® best offers. After a very successful and hassle free first experience, we had no hesitation in recommending the approach to our partners at The Carlyle Group. The decision has proved to be correct as evidenced by the outstanding result achieved by Neil Singer and his team” Gareth Davies of Generation Estates Ltd.