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
$2,900,000
Purchase Price
$2,675,000
Deposit (assuming 70 % debt)
$802,500
Stamp Duty
$143,977
Building Report*
$750
Solicitor Cost*
$2,000
Valuation*
$4,000
Total Cash Required
$953,227.5
Purchase Price + Purchasing Cost
$2,825,727.5
Net Annual Cash Flow Return
$182,000
Net Yield on Property
6.80 %
Net Yield Accounting for Purchasing Costs
6.44 %
Cash-On-Cash Returns
Deposit Needed = % + Costs
$953,227.5
Cost of Loan (Assume 3 % pa on 70 % debt)
$56,175
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 %

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