143 Crown street Wollongong valuation report PDF

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commercial valuation report...

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On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

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On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

Valuation Report: Prepared on: 15/04/2020 Prepared by: Rhianna Evans

143 Crown Street, Wollongong Mixed use retail/ office income producing property.

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On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

Table of Contents 1. EXECUTIVE SUMMARY ......................................................................................................................... 4 1.1

Valuation ................................................................................................................................................ 5

2. INTRODUCTION.................................................................................................................................... 5 2.1 Instructions ................................................................................................................................................... 5 2.2 Brief Description ............................................................................................................................................ 5 2.3 Market value ................................................................................................................................................. 5

3. Property Details ................................................................................................................................... 5 3.1 title particulars .............................................................................................................................................. 5 3.2 Encumbrances ............................................................................................................................................... 6 3.3 land area and topography ............................................................................................................................. 6

4.

town planning .................................................................................................................................. 6 4.1 objectives of the zone.................................................................................................................................... 6 4.2 permissions ................................................................................................................................................... 7 4.3 statutory value .............................................................................................................................................. 7 4.4 environmental factors ................................................................................................................................... 7

5. PHYSICAL SITE DETAILS ......................................................................................................................... 8 5.1 locality .......................................................................................................................................................... 8 5.2 Roads and Access .......................................................................................................................................... 8 5.3 services and amenities .................................................................................................................................. 8

6. IMPROVEMENTS .................................................................................................................................. 9 6.1 General description ....................................................................................................................................... 9 6.2 details of floor areas ...................................................................................................................................... 9 6.3 structural survey ......................................................................................................................................... 10

7. environmental issues .......................................................................................................................... 10 8. tenancy details ................................................................................................................................... 11 9. income analysis .................................................................................................................................. 13 9.1 income summary 2019 ................................................................................................................................ 13 9.3 income summary 2016-2020........................................................................................................................ 13 9.4 outgoing expenses ....................................................................................................................................... 14

10. valuation rationale and approach .................................................................................................... 15 10.1

Discounted cash flow ............................................................................................................................ 15

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On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768 10.2

Capitalisation of net income .................................................................................................................15

10.3

highest and best use ............................................................................................................................. 16

11. sales and rental evidence ................................................................................................................. 17 13. GST .................................................................................................................................................. 19 14. market overview .............................................................................................................................. 19 14.1 Marketability............................................................................................................................................. 20

15 valuation certificates: ........................................................................................................................ 20 16. Appendix .......................................................................................................................................... 22 Appendix 1: letter of instruction ....................................................................................................................... 22 Appendix 2: title document ............................................................................................................................... 23 appendix 3: photographs .................................................................................................................................. 24

References ............................................................................................................................................. 27

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On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

1. EXECUTIVE SUMMARY Please find below a summary of key property details; Subject property 143 Crown Street, Wollongong Lot 1 in deposited plan 513428 Registered owners Joint owners: Dennis Robert Colla and Maria Vittoria Colla

Zoning

The subject property, 143 Crown Street Wollongong comprises a 240sqm allotment, improved with a three-level, mix use commercial building. The property resides in the main street of Wollongong, surrounded by Wollongong Central; a large shopping and dining precinct. There are currently three tenants located in the building; Insight Marketing Group, Centretown Newsagency and Zoe Blackburn Hair. B3 Commercial Core (Wollongong)

Land Area

240m2

Building Area

600m2

Parking

4 car spaces, at rear of building. Shared with buildings on either side. 19th June 2018 $2,250,000 This valuation report has been prepared under instruction from Wollongong Property Associates to assess the market value of the subject property for sales purposes.

Brief description

Last sale Instructions

Prepared for

The interest being valued is the unencumbered freehold estate subject to current lease. Greg Gilbert of Wollongong Property Associates

Date of valuation

20th of April 2020

Interest of

Freehold interest, subject to lease for sales purposes

valuation

Market value

Hypothetical development method Capitalisation of Net Income $2,100,000

valuer

Rhianna Evans, On Point Property Group

Valuation metrics

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On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

1.1 Valuation Subject to the considerations contained within the body of this report, it is our opinions that the market value of the subject property; 143 Crown Street, Wollongong $2,100,000.

2. INTRODUCTION 2.1 Instructions We refer to written instruction from Greg Gilbert of Wollongong Property Associates to assess the market value of the property for potential sales purposes. We value the property in the interest of freehold property subject to lease.

2.2 Brief Description The subject property, 143 Crown Street Wollongong comprises a small site of 240sqm block in zoning B3

2.3 Market value The Australian Property Institute (API) has adopted the international definition of Market Value, namely: “The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.” (API, https://www.api.org.au/definitions 9/4/20)

3. Property Details 3.1 title particulars NO CERTIFICATE OF TITLE HAS ISSUED FOR THE CURRENT EDITION OF THIS FOLIO. CONTROL OF THE RIGHT TO DEAL IS HELD BY ING BANK (AUSTRALIA) LIMITED.

Search Date

9th April 2020

Local Government Area

Wollongong

Parish

Wollongong

County

Camden

Legal Description

Lot 1 in Deposited Plan 513428

Reference

1/513428 5

On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

Registered Owners

Dennis Robert Colla Maria Vittoria Colla

3.2 Encumbrances 1. Reservations and conditions in the crown grant 2. BK 173 No 472, right of way appurtenant to the land above described affecting the land shown so burdened in DP513428 3. Right of carriageway 5.03 wide & var. Appurtenant to the land above described See appendix 1 for title particulars

3.3 land area and topography Below, areal imagery of the land, expressing the length of all sides of the land in Metres.

The subject sight is rectangular in shape and has the following measurements: • • •

8m Street Frontage to Crown Street Dimensions 8.1 / 5.03 X 37.74 Total site area 240m2

4. town planning The subject property is classified as B3 Commercial Core under the Wollongong City Council Local Environment Plan 2009

4.1 objectives of the zone Extracted from the Wollongong Local Environment Plan 2009:

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On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

Objectives of zone • To provide a wide range of retail, business, office, entertainment, community and other suitable land uses that serve the needs of the local and wider community. • To encourage appropriate employment opportunities in accessible locations. • To maximise public transport patronage and encourage walking and cycling. • To strengthen the role of the Wollongong city centre as the regional business, retail and cultural centre of the Illawarra region. • To provide for high density residential development within a mixed use development if it— • is in a location that is accessible to public transport, employment, retail, commercial and service facilities, and • contributes to the vitality of the Wollongong city centre. (NSW legislation, 2009)

4.2 permissions

Development Controls Floor Space Ratio: 0.50:1 Height Limit: 48 m

4.3 statutory value NSW Valuer General states the value of the unimproved land at 143 Crown Street, Wollongong to be $1,020,000. The land value is the freehold value of the land excluding any structural improvements See annexure 3

4.4 environmental factors The property is not located within an Aboriginal Heritage Zone. The property is not located within a Bushfire Prone Zone. The property is not located within a Flood Prone Zone. The property is not affected by Acid Sulphate Soils. 7

On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

5. PHYSICAL SITE DETAILS 5.1 locality The subject property 143 Crown Street is located in Engadine, in the local government area of Wollongong city council in the Illawarra Region. Wollongong is located 68km South of Sydney CBD. Overall, Wollongong is a heavy industrial area with high port activity. The suburb is also a prime residential area, due to its coastal location. Crown Street, Wollongong is a major retail shopping precinct for the South Coast, Wollongong Central. The subject property is situation approximately: - 700m from Wollongong Station - 400m from Wollongong Central - 1.1km from Wollongong Beach - 6km from M1 (Princes Motorway); main highway towards Sydney.

5.2 Roads and Access Wollongong is in a prime location for accessibility, with numerous modes of transport readily available. Wollongong is directly off a major highway, M1 Princes Motorway or A1 Princes Highway, adjoining the Southern Suburbs with the city. Access to the subject property via vehicular transport is via Simpson Place, where there is a driveway to an open area with car spaces. The subject property shares this space with 145 Crown street. This provides access to the rear of the property. Simpson place is a single lane bitumen sealed, one-way carriageway with concrete curbing, entering off Burelli street. Primary access to the street frontage, via Crown Street is only accessible for pedestrians, as the property forms a part of Crown Street Mall, a shopping precinct. Public transport: - 700m walk to Wollongong Station. South Coast Line runs from this station either north, towards Sydney or South towards Kiama. - A bus stop is located 100m from the parking at the rear; Burelli St opp Simpson Pl. Numerous bus services stop here, travelling around Wollongong and surrounding suburbs. Routes 10, 11, 24, 31, 33, 55c and 887. -

5.3 services and amenities We understand that electricity; bottled gas; town water; telephone; sewerage; and garbage collection services are all available and connected to the subject property.

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On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

6. IMPROVEMENTS 6.1 General description The subject property is improved with a 3 storey retail/ office building. The exterior of the building is painted red brick, with a tin roof. All aspects of the exterior property are of adequate quality, with no apparent problems. The building is currently divided into three separate areas, each containing a business. A concrete slab resides behind the building, providing car parking space for tenants and customers.

6.2 details of floor areas The property was sold on the 19th June 2018 to the tenants of one business that rented the property; Dennis Robert Colla and Maria Vittoria Colla (owners of Centre Town Newsagency); hence the property is part owner occupied, with the remaining floor space rented to two separate tenants. Below, an outline of the three separate areas of the building: Area:

Details:

Ground Level

Owner occupied. Centre Town Newsagency Total floor 200m2 Minus staircase area: 170m2 Linings plasterboard Flooring- carpet/ timber floorboards Ceiling- plasterboard Fit out: newsagency style furbishing’s, shelves, cupboards. Air conditioning units. Cash register. Lotto machines. Drink fridge Front section of the floor consists of the retail newsagency, back section is used as office space and a staff area. A goods lift is also located at the back corner on the ground and lower levels.

Lower level

Condition: renovated in 2018 upon purchase of the property, the newsagency is of high quality. New floorboards, carpets and fixtures. Currently occupied with a long -term tenant. Zoe Blackburn Hair. Centre Town newsagency uses the back half of the floor as a storage area. Total floor 200m2. Salon Space: 107m2 Storage/ goods lift: 93m2 Linings: plasterboard/ wall paper Flooring: Tiling Ceiling: plasterboard 9

On Point Property Group 22 North West Arm Road, Grays Point 2232 (PH) 9501 2245 (E) [email protected] licence number: 887055768

Fit out: reception desk area, 12 salon chairs, basins, taps, shelving, halogen style lighting, ducted air conditions Condition: well-presented salon. Upper level

Currently occupied by Insight marketing group. The level is used as a meeting room and office space, with multiple rooms. Office space: 192m2 Linings: plasterboard Flooring: carpet and floorboards Celing: plasterboard Fit out: reception area, tables, chairs, ducted air conditioning, fluorescent lighting, mirrored wardrobe. Condition: refurbished in 2018 when the tenant started the lease. New flooring, fresh paint. Well presented

Onsite Parking

Stairwell

Located at the rear of the building. Access via Simpson Pl. Open concrete slab with car spaces. Shared area with NAB bank (located at 141 Crown St) and 2 other retail spaces. There are two staircases located on the property. 1. Lower and ground level. For storage access for Centre Town Newsagency. Located at the rear of the property 2. All levels. Allows access to both the upper and lower levels from street level. Located on the right hand side of the property.

6.3 structural survey We have undertaken an inspection of the subject property. We can confirm that the land and improvements appear in sound and acceptable condition. However, the valuer is not a building construction or structural expert and is therefore unable to certify the structural soundness of the improvements. Reliants of this report should make their own enquiries.

7. environmental issues Upon inspection there appears to be no contamination present on the subject property. To our understanding the property isn’t listed as a contaminated site and contains no evidence of asbestos, or harmful chemicals. To ensure certainty of...