Hi all
I'm looking for some advice here because I am definitely a little out of my depth here.
A family member has an industrial property in Sydney that is one of about 10 complexes inside a mini 'business park.'
they have been approached, along with the other property owners, to be bought out by persons looking to develop a large residential tower.
They have received a formal offer and have called for a first meeting next week. Would i be correct in assuming the initial offer received is likely a lowballed offer?
they have received an initial offer of 8 figures to be split between the 10 entities. each valued within appx 500k of each other based on size.
Each person will likely receive 2.5x-3x the current value.
They are asking a 2% commission and then a 10% incentive based commission in order to achieve a better result.
There is also a 12 month leaseback period + advertising costs
Has anyone been involved in any multi owner deals where they have been bought out by developers/investors?
To me one thing that stands out is their 10% incentive based commission. im sure they would be low balling this figure and how would one go about making this figure more favourable, by bringing downt he % or increasing the floor at which this incentive begins?
Have you any tips as to what would be some good questions to ask and what some sticking points might be?
Thanks in advance! I'm hoping i can learn a few things from the experienced and savvy ones of you out there!
I'm looking for some advice here because I am definitely a little out of my depth here.
A family member has an industrial property in Sydney that is one of about 10 complexes inside a mini 'business park.'
they have been approached, along with the other property owners, to be bought out by persons looking to develop a large residential tower.
They have received a formal offer and have called for a first meeting next week. Would i be correct in assuming the initial offer received is likely a lowballed offer?
they have received an initial offer of 8 figures to be split between the 10 entities. each valued within appx 500k of each other based on size.
Each person will likely receive 2.5x-3x the current value.
They are asking a 2% commission and then a 10% incentive based commission in order to achieve a better result.
There is also a 12 month leaseback period + advertising costs
Has anyone been involved in any multi owner deals where they have been bought out by developers/investors?
To me one thing that stands out is their 10% incentive based commission. im sure they would be low balling this figure and how would one go about making this figure more favourable, by bringing downt he % or increasing the floor at which this incentive begins?
Have you any tips as to what would be some good questions to ask and what some sticking points might be?
Thanks in advance! I'm hoping i can learn a few things from the experienced and savvy ones of you out there!