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Purchased
Large industrial complex with international tenant
Our valued client was only looking for off-market freehold industrial assets in a metro market. There was also a need to have a minimum WALE of 3 years to help with lending. This was a tough task in a hot market but we managed to use our superior industry contacts to secure this premium asset off-market. We purchased at a near 7% net yield in a market where 6% was difficult to achieve. Due to this strong purchasing our client should already have equity built up from day one.
Key Highlights
• Building Area: 2,185sqm
• Land Area: 4590m2
• $182,000 pa + GST + Outgoings
• Long standing tenant since early 2000
• Secure asset with 6-month bank guarantee
Purchase Details
Asking Price
2900000
Purchase Price
2675000
Deposit (assuming
70
% debt)
802500
Stamp Duty
Nil
143977
Building Report*
750
Solicitor Cost*
2000
Valuation*
4000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
953227.5
Purchase Price + Purchasing Cost
2825727.5
Net Annual Cash Flow Return
182000
Net Yield on Property
6.80
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.44
%
Cash-On-Cash Returns
Deposit Needed =
% + Costs
953227.5
CASH FLOW AFTER
MORTGAGE COSTS
MORTGAGE COSTS
Cost of Loan
(Assume
3
% pa on
70
% debt)
56175
Return of Equity
(Pure cash flow return)
13.20
%
Return of Equity with a
5% Capital Growth Rate:
27.23
%
Return of Equity with a
7% Capital Growth Rate:
32.84
%
Return of Equity
10% Capital Growth Rate:
41.26
%
*approximate numbers
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