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Purchased

Industrial investment with national business tenant

For our client’s first purchase with us, they were interested in a blue-chip location and freehold industrial investment close to the CBD. We sourced this incredible asset just 13km from the CBD. Purchased off-market, it comes with a 5+5 year lease to a national business. We liked this property because of its exceptionally high yield for an inner city market and a long lease. The tenant had been there many years which gave us more confidence about the long term stability of the asset.

Purchase Details
Asking Price
2000000
Purchase Price
1825000
Deposit (assuming
70
% debt)
547500
Stamp Duty
91957.5
Building Report*
800
Solicitor Cost*
1500
Valuation*
4000
Other Fees* (Depreciation
report, bank fees)
Total Cash Required
645757.5
Purchase Price + Purchasing Cost
1923257.5
Net Annual Cash Flow Return
114000
Net Yield on Property
6.25
%
Net Yield Accounting for
Purchasing Costs
5.93
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
645757.5
Cost of Loan
(Assume
3
% pa on
70
% debt)
31937.5
Return of Equity
(Pure cash flow return)
12.71
%
Return of Equity with a
5% Capital Growth Rate:
26.84
%
Return of Equity with a
7% Capital Growth Rate:
32.49
%
Return of Equity
10% Capital Growth Rate:
40.97
%
*approximate number

Key Highlights

• Building Area: 790m2

• Land Area: 1215m2

• Purchased off-market 6.25% net return

• Annual Net Rental: $114,000 pa + GST + Outgoings

• National Business with a 5 + 5 year lease

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If you’re interested in joining the lucrative world of commercial property, contact us now.

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