Well-positioned industrial asset with dual leases

This industrial asset was recently acquired on behalf of one of our valued clients. The property is well-positioned in Brisbane’s inner-north with dual tenant leases; complementary businesses for stone, tiling, construction and interior design. Our client was after an off-market industrial asset within the competitive Brisbane market.

We looked over a number of assets before landing this large freehold dual-tenanted investment. We expect some rapid capital growth as the market tightens under increasing demand and limited supply.

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Key Highlights

  • Building Area: 6,070m2
  • NLA: 2,290m2
  • Net Return $334,000 p/a
  • 36% site coverage in Brisbane LGA
  • 2 tenancies
Purchase Details
Asking Price
$9,480,000
Purchase Price
$5,480,000
Deposit (assuming 70 % debt)
$1,644,000
Stamp Duty
$308,450
Building Report*
$1,000
Solicitor Cost*
$5,500
Valuation*
$3,500
Total Cash Required
$1,962,450
Purchase Price + Purchasing Cost
$5,798,450
Net Annual Cash Flow Return
$334,000
Net Yield on Property
6.09 %
Net Yield Accounting for Purchasing Costs
5.76 %
Cash-On-Cash Returns
Deposit Needed = % + Costs
$1,962,450
Cost of Loan (Assume 3 % pa on 70 % debt)
$95,900
Return of Equity (Pure cash flow return)
12.13 %
Return of Equity with a 5% Capital Growth Rate:
26.09 %
Return of Equity with a 7% Capital Growth Rate:
31.68 %
Return of Equity 10% Capital Growth Rate:
40.06 %

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