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Purchased

Tier 1 Infrastructure with National Tenant on 5x5 Lease Term.

This is a truly blue-chip investment opportunity completed by the team rethink investing team. Brand new 5-year lease with Repco Group, backed by a global auto giant parent company, as added security. Net income of $225,000, offering a net yield of 6%.

The tenant pays all outgoings including land tax, strata fees and building insurance (excluding property management), which makes this a very attractive asset, along with 3% annual increases to the rent.

Purchase Details
Asking Price
3950000
Purchase Price
3750000
Deposit (assuming
65
% debt)
1312500
Stamp Duty
164320.37
Building Report*
1200
Solicitor Cost*
9000
Valuation*
4000
Other Costs*
1000
Other Fees* (Depreciation
report, bank fees)
3950000
Total Cash Required
1491020.37
Purchase Price + Purchasing Cost
3928520.57
Net Annual Cash Flow Return
225000
Net Yield on Property
6
%
Net Yield Accounting for
Purchasing Costs
5.73
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1491020.37
Cost of Loan
(Assume
6.25
% pa on
65
% debt)
152343.75
Return of Equity
(Pure cash flow return)
4.87
%
Return of Equity with a
5% Capital Growth Rate:
17.45
%
Return of Equity with a
7% Capital Growth Rate:
22.48
%
Return of Equity
10% Capital Growth Rate:
30.02
%
*approximate number

Key Highlights

• Location: Launceston, Tasmania

• Net income of $225,000 (after 100% of outgoings including mgt fees and land tax)

• Building: 801m2 (built in 2010)

• Other: Invaluable 37 car spaces on site including 3 on title

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