Allsop Space has revealed that its private treaty initiative has yielded nine property sales worth €8.6m, with a further 25 properties worth €14.9m sold via its Private Treaty to Auction option.
The business was launched in September 2013, marking a first for Ireland. It works within a maximum six-month timeframe, with a sale to be negotiated by a pre-defined date (typically 2-3 months). If a binding sale with exchange of contracts has not emerged, for whatever reason, the property can be offered for sale in the next available auction with an agreed reserve price.
Since September 2013, over 40 vendors have chosen to go down the private treaty route and it has an additional eight properties on the market, all at private treaty, worth an estimated €6.1million with another 20 properties coming to the market shortly, it said.
Robert Colleran, Commercial and Investment Director at Allsop Space, said: “We are hugely encouraged with the take up to date for our private treaty option. 80% of our purchasers are Irish, which is similar to our auction stats. We are the only agency in Ireland presenting a unique service like this for our customers – not only does it give a peace of mind that all potential avenues have been explored but it also ensures that the highest possible price can be achieved for our vendors, and fairness of process to our purchasers.”
A recent example of the success of private treaty is the sale of Park House and Kirwan House. Park House and Kirwan House was sold for €6.25 million at the Allsop Space auction in the RDS on Friday May 2nd. The property was sold to a consortium of Irish investors and the sale should close in the coming weeks. The sale represented the highest price paid for a property at auction in many years, and was sold using the ‘private treaty to auction’ sales process.
Robert Colleran and Bryan Garry of Allsop Space’s private treaty department had initially agreed a sale for a price in excess of the asking price of €6 million. During the marketing period, particulars had been issued to a database of 60,000 subscribers. 60 parties expressed a strong interest, leading to 40 viewings before a best bids process concluded in sale agreement.
However, the sale stalled at contract stage and the purchaser withdrew from the sale, citing issues with the contract. The under bidder for the property was not prepared to commit. In consultation with Allsop Space, the vendor elected to enter Park House into their next available auction with a reserve range of €5.5m to €6m.