13/08/2013 - Auction Secures That Bit Extra For Vendor

Chris Herde

 A POST-WAR Queenslander in the middle of a northern suburbs industrial precinct has sold under the hammer for well over the original asking price.  Long-term tenant Wilsons Excavations & Bitumen paid $1.115 million for the 3250sq m property at 31 Vauxhall St, Virginia.

Raine & Horne Commercial’s Lawrence Temple said three months before the start of the auction campaign the property was listed for sale at $1.05 million.  ``During this time there were a few contracts put forward to the seller, all sub-$1 million, one of which was the winning bidder,’’ he said.  ``The parties wouldn’t increase their offers.  The Cairns based owner, who is moving back overseas, wanted to close the matter and we put it to auction.’’

Mr Temple said there were 12 registered bidders and a total of 34 bids on the day.  ``There was spirited bidding because two parties really fought it out at the end, a developer and the sitting tenant, who eventually bought the property,’’ he said.  ``This is a strong result for future industry-zoned land. ``The sale price at auction was more than the list price when the property was for sale.  ``This proves that auction is still the most effective method to sell commercial property in the current climate.’’

Wilsons has leased the property for a number of years and received council approval to convert the house into an office and caretaker’s flat.  At the time of the sale they were on a month-by-month lease.  Wilsons uses the property, which is 100m from Sandgate Rd, to store equipment and gravel on hardstand that is partially filled and compacted.  Mr Temple said there was long-term redevelopment upside in the transaction.  ``There are a number of similar houses in the area slowly being redeveloped into tilt slab industrial facilities,’’ he said. ``That’s the eventual end use of this site.’’

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Source: The Courier Mail,Primesite, 13 August 2013