Join Rethink Commercial Education - Sign up for the 3rd exclusive cohort; ENROL NOW!

Purchased

High yielding warehouse with a 5+5+5 year lease

  • $120,000 pa +GST + Outgoings
  • Rock solid 5+5+5 year lease
  • Lease to a national food company

Purchase Details

Asking Price

$1,800,000

Purchase Price

$1,650,000

Deposit (assuming 70% debt) - 30%

$577,500

Stamp Duty

$81,000

Building Report*

$900

Solicitor Costs

$4,000

Valuation

$1,500

Total Cash Required

$664,000

Purchase Price + Purchasing Costs

$1,737,400

Net Annual Cash Flow Return

$120,000

Net Yield on Property

7.27%

Net Yield Accounting for Purchase Costs

6.91%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$664,900

Cost of loan (assume 3% pa on 70% debt):

$34,650

Return on Equity (pure cash flow return):

12.84%

Return on Equity with a 5% Capital Growth Rate:

25.24%

Return on Equity with a 7% Capital Growth Rate:

30.21%

Return on Equity with a 10% Capital Growth Rate:

37.65%

*approximate numbers

Building Type: Warehouse
Building Area: 1600m2

Land Area: 2,685m2
WALE: 5

How we helped this client:

Boasting a very strong 5+5 year lease at a high yield, high-quality industrial assets like this are increasingly hard to find. Our valued client was looking for a high yielding industrial asset with a long lease. The long lease made finance easier and the purchase more comfortable. We secured this property at a net yield of 7.27% which was higher than anything else in the local area.

More properties

Contact Us