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Purchased
A-grade industrial warehouse with four tenancies
Our valued client was an experienced commercial investor with a significantly large portfolio already. They were in search of high-quality off-market properties. This industrial asset met all of their criteria in terms of yield, upside, and more. We love this A-grade 3,349m2 warehouse because it comes with four separate tenancies. It boasts a huge 5,800m2 of titled freehold land and it backs onto an airport.
Purchase Details
Asking Price
7500000
Purchase Price
7170000
Deposit (assuming
70
% debt)
2151000
Stamp Duty
438852.4
Building Report*
1400
Solicitor Cost*
6000
Valuation*
3000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
2600252.4
Purchase Price + Purchasing Cost
7619252.4
Net Annual Cash Flow Return
455778.41
Net Yield on Property
6.36
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.98
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2600252
Cost of Loan
(Assume
3
% pa on
70
% debt)
150570
Return of Equity
(Pure cash flow return)
11.74
%
Return of Equity with a
5% Capital Growth Rate:
25.52
%
Return of Equity with a
7% Capital Growth Rate:
31.04
%
Return of Equity
10% Capital Growth Rate:
39.31
%
*approximate number
Key Highlights
• Building Area: 3,349m2
• Land Area: 5,800m2
• Annual Net Rental: $455,778pa + GST + Outgoings
• A-grade building and location
• 4 tenancies
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