By William Gunning - Gunning Commercial
A Hungry Jacks restaurant in Hurtsville recently went under the hammer attracting a staggering $3,000,000 over the reserve price. The commercial agent who sold the fast food outlet, Gunning Commercial Director William Gunning, explains the events leading up to the auction.
The property had many key factors that were highly attractive to buyers in the area. Hurtsville is a very hot market right now and, considering it attracts predominately Asian buyers, this rare commercial opportunity enticed some interesting bidders.
The restaurant is situated next door to Westfield Hurtsville’s pedestrian entrance on Forest Road. This particular part of Forest Road is very popular right now.
We planned four weeks of target marketing for this commercial property, including online advertising, mail outs, ads in foreign newspapers and The Leader (which is the local newspaper) and a signboard. We had a few solid enquiries from the local market from day one generated from the signboard and the newspaper advertising.
We had 90 qualified buyers interested in the property when we started our marketing campaign, and from the 90 enquiries we issued 30 Contracts for Sale.
In the end, we had 20 potential buyers turn up at the auction. Damien Cooley from Cooley Auctions was the auctioneer on the day. After he commenced the auction it took a minute or two to get the bidding started. Once the first bid came in, the reserve was reached within five or six bids and then bidding moved in $20,000 and $50,000 increments.
The property sold for $6,650,000, which was $3,150,000 over the reserve price.|
The auction process was the best way to sell this property. The potential buyers who turned up on the day only bid as high as they thought the property was worth to them.
We thought we would get a good result irrespective of the method, but this result blew away our expectations. The result has now set a high benchmark for us and one we are excited to maintain.