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Retail Asset | $4,400,000 | Net Yield: 6.02% | VIC

This high-quality retail asset reflects the type of secure, income-producing property Rethink Investing continues to acquire on behalf of clients.

Positioned within one of Melbourne’s strongest south-east growth corridors, the asset is underpinned by a long-term lease to a global fitness operator, providing stable and recurring income supported by a well-established business model.

The property generates a net annual cash flow return of approximately $265,084, supported by a 10-year lease with a further option extending the potential tenure, providing long-term income security. Fixed annual increases ensure consistent rental growth over the hold period.

Located within a well-established town centre environment, the asset benefits from strong surrounding residential expansion and a complementary mix of essential service-based tenants, supporting ongoing foot traffic and tenant performance.

The broader region continues to experience significant population growth, infrastructure investment, and increasing demand for convenience-based retail and service uses, reinforcing long-term rental growth and asset resilience.

With secure income, a high-quality tenant, and exposure to a high-growth metropolitan corridor, this acquisition demonstrates the calibre of assets Rethink Investing continues to secure for clients.

Key Highlights

Purchase Details
Asking Price
Purchase Price
4400000
Deposit (assuming
70
% debt)
1320000
Stamp Duty
Nil
269759
Building Report*
3000
Solicitor Cost*
7000
Valuation*
3000
Other Fees* (Depreciation
report, bank fees)
83600
Total Cash Required
1686359
Purchase Price +
Purchasing Cost
4766359
Net Annual Cash Flow Return
265084
Net Yield on Property
6.02
%
Net Yield Accounting for
Purchasing Costs
5.56
%
Cash-On-Cash Returns
Deposit Needed =
% + Costs
1686359
CASH FLOW AFTER
MORTGAGE COSTS
64884
Cost of Loan
(Assume
6.5
% pa on
70
% debt)
200200
Return of Equity
(Pure cash flow return)
3.85
%
Return of Equity with a
5% Capital Growth Rate:
16.89
%
Return of Equity with a
7% Capital Growth Rate:
22.11
%
Return of Equity
10% Capital Growth Rate:
29.94
%
*approximate numbers

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