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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.
Key Highlights
• Building Area: 2024m2
• Land Area: 2024m2
• 100% freehold interest
• Significant anchor tenant, Queensland Health
• 78 car parking bays
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
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