TFA undertook a wide-scale marketing program aimed at developers, end users, and high net worth individuals. The property is located in an area in greater Metro Manila that had not yet experienced the type of growth in the residential and office sectors that some other parts of the city had, so TFA worked harder to generate interest. We put together a hypothetical development plan for a residential townhouse concept which we utilized to ultimately sell the property to the buyer. The inquiries that we generated came from not only developers, but individuals who are into land banking. We received offers for the property from these types of buyers, but advised our client, the seller, to hold off for better offers. The ultimate target was an end user who would use the property for the long term for their business needs, but the general feedback was that the property was too big for their needs. Thus, we increased our efforts in targeting developers.
The established local developers were not interested at the asking price, and were even turned off by it. The seller was not open to lowering the price, however, as their book value was close to the asking price, and they wanted to cover the transactional taxes while making a small profit. As the marketing period approached one year, we were able to identify the eventual buyer through an e-mail blast campaign to a local business group.
TFA managed the negotiations in a delicate manner as the asset was clearly not a hot property at the seller’s asking price. Through our financial modeling and market research on the population and possible developments in the area, we were able to convince the buyer to accept a price that was only five percent (5%) below the asking price.