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A retail centre investment opportunity in the South of Perth

This investment opportunity in one of the top three sought-after suburbs in the Bunbury Region (150km South of Perth) with 11 shops on a large 4,659sqm freehold corner block, boasting approx. 187m of street frontage. The long-term development potential of this property with 3-sided street access is outstanding.

Currently zoned "Local Centre" with R60 residential density, it can accommodate up to 40 units which is feasible due to sufficient site coverage for parking. There is a mix of 5 tenants fully occupying 11 units with background in medical food, service and retail.

These tenants have been on site for as long as 2007 (Fish & Chips) to 2023 (Yankee Candy). Allied Health have increased their NLA by occupying another shop in 2023. Three of the five tenants are in the medical field, accounting for 83% of collected rental income.

Purchase Details
Asking Price
5000000
Purchase Price
4720000
Deposit (assuming
65
% debt)
1652000
Stamp Duty
235525.5
Building Report*
1500
Solicitor Cost*
9000
Valuation*
4500
Other Fees* (Depreciation
report, bank fees)
103648
Total Cash Required
2006173.5
Purchase Price + Purchasing Cost
5074173.5
Net Annual Cash Flow Return
351224
Net Yield on Property
7.22
%
Net Yield Accounting for
Purchasing Costs
6.92
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2006173.5
Cost of Loan
(Assume
6.25
% pa on
65
% debt)
191750
Return of Equity
(Pure cash flow return)
7.95
%
Return of Equity with a
5% Capital Growth Rate:
19.71
%
Return of Equity with a
7% Capital Growth Rate:
24.42
%
Return of Equity
10% Capital Growth Rate:
31.48
%
*approximate number

Key Highlights

• Total land size 4,659sqm freehold

• Corner block with approx. 187m street frontage (three-sided access)

• 11 shops with a total NLA of 1,376.80sqm• Net Income $351,224 pa + outgoings + GST (excl management fees)

• 60 bays on site

• Solar panels on roof

• Great development potential due to three sided street access

• Currently zoned “Local Centre” and R60 (can accommodate up to 40 units under current zoning)

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