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Purchased
Rare high yielding healthcare asset with multiple long leases
Our valued client was a high net worth individual looking for a recession proof property. This asset offered long leases, multiple medical tenants and an A-grade building just 11 years old, along with an incredible $619,874 per annum net income. Originally purpose built for its anchor tenant, this investment is a great example of a defensive income profile, which should remain consistent long into the future, plus good depreciation due to the age and quality of the building.
Purchase Details
Asking Price
9000000
Purchase Price
8250000
Deposit (assuming
70
% debt)
2922500
Stamp Duty
Nil
491269
Building Report*
2000
Solicitor Cost*
6000
Valuation*
5000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
3426769
Purchase Price + Purchasing Cost
8854269
Net Annual Cash Flow Return
620000
Net Yield on Property
7.43
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
7.00
%
Cash-On-Cash Returns
Deposit Needed =
% + Costs
3426769
CASH FLOW AFTER
MORTGAGE COSTS
MORTGAGE COSTS
Cost of Loan
(Assume
3
% pa on
70
% debt)
135687.5
Return of Equity
(Pure cash flow return)
14.13
%
Return of Equity with a
5% Capital Growth Rate:
26.32
%
Return of Equity with a
7% Capital Growth Rate:
31.19
%
Return of Equity
10% Capital Growth Rate:
38.50
%
*approximate numbers
Key Highlights
• Building Area: 2024m2
• Land Area: 2024m2
• 100% freehold interest
• Significant anchor tenant, Queensland Health
• 78 car parking bays
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