In early 2012, Ray White Commercial was appointed exclusive agent to sell the freehold interest in Reddam School, 70 – 80 Edgecliff Road, Woollahra Sydney. The Property is strategically located in the prestigious and desirable eastern Sydney suburb of Woollahra; situated 6kms from the Sydney CBD, 2.3kms from the iconic Bondi Beach and 400m from Bondi Junction transport terminal and Westfield Bondi Junction.
The Property offered a unique investment in the education sector, which was tightely held and traditionally owned by governments or charities. Backed by a new 10 year lease to the tenant, Reddam House, in which Reddam was required to pay all operational outgoings, the Property provided a counter cyclical income stream in a period of economic uncertainty. The Property’s large land and building area of 3,981m² and 6,585m² respectively added further attractiveness to potential buyers as such parcels was a rare offering in the eastern suburbs of Sydney.
The marketing campaign needed to allow for a number of unique factors.
There were no comparable sales that could be reoffered to, nor comparable lease deals to give purchasers comfort on the rent levels;
The tenant and the landlord had a long and close relationship, and both were concerned at the potential harm that could be done to the school if a public campaign was undertaken. (eg. parents of children at school concerned the school was being sold, not just the land and buildings); and
The tenant had a first and last right of refusal over the Property which made broader marketing of it very difficult.
Accordingly, direct approaches to other schools, charities, private family offices and government bodies is what generated the competitive tension. Once the tenant realised competing schools and other related bodies were inspecting the Property, Reddam acted quickly to purchase the Property to secure its tenure.
The ultimate success of the sale of this Property was not the marketing measures undertaken, but rather “cold calling” of institutions in the education sector that were primarily not known to Ray White Commercial, however were likley to be interested in the Property. This created the urgency required for the tenant to act.
|Vendor:||Zandra Pty Ltd|
|Sale Date:||July 2013|