Agent gets 17.5% above asking price using BidX1 technology

Agent QRE has just sold a small office investment in Bray for 17.5 per cent above the guide price using an online sales technique which it has successfully deployed on three other occasions.

The agent decided to use BidX1 technology in the sales process after receiving a high number of enquiries for Rathclaren House at 27 Dublin Road in Bray, Co Wicklow.

The two-storey, mid-terrace investment extends to 186.5sq m (2,007sq ft) and is let to the HSE on a 35-year lease from May 2000 at a rent of €40,000. It was launched on the market in early September at €400,000 and was knocked down at around €470,000 to reflect a net initial yield of 8.15 per cent.

The online bidding process, which lasted half an hour, replaced the customary sealed bids procedure at the end of a private treaty sales campaign. Developed by Space Property Group, BidX1 allows investors to bid against each other online in an open and transparent platform, with contracts being executed at the end of the bidding and the financial deposit collected.

QRE first used this approach in June for the sale of a modern glazed commercial showroom at 25 Rockhill in Blackrock, Co Dublin. It attracted five qualified investors who bid competitively during a 60-minute period online. The initial guide price of €700,000 was soon exceeded and the property was eventually sold for €1.07 million.

Copies of the signed contracts were in the inboxes of the vendor, purchaser and their respective solicitors before the close of business on the same day. The balance of the 10 per cent deposit was paid within 48 hours.

QRE now plans to dispose of three other properties using the same approach.