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Purchased

High yielding asset with multiple income streams

  • Annual Net Rental: $444,000pa + GST + Outgoings
  • 20 dedicated parking spaces
  • 5 tenancies

Purchase Details

Asking Price

$6,200,000

Purchase Price

$5,750,000

Deposit (assuming 70% debt) - 30%

$1,725,000

Stamp Duty

$332,149

Building Report*

$1,400

Solicitor Costs

$6,000

Valuation

$3,000

Total Cash Required

$2,067,549

Purchase Price + Purchasing Costs

$6,902,549

Net Annual Cash Flow Return

$444,000

Net Yield on Property

7.72%

Net Yield Accounting for Purchase Costs

7.29%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$2,067,549

Cost of loan (assume 3% pa on 70% debt):

$120,750

Return on Equity (pure cash flow return):

15.63%

Return on Equity with a 5% Capital Growth Rate:

29.54%

Return on Equity with a 7% Capital Growth Rate:

35.10%

Return on Equity with a 10% Capital Growth Rate:

43.45%

*approximate numbers

Building Type: Shopping Centre
Building Area: 787m2

Land Area: 3,023m2
WALE: 3.8

How we helped this client

This property was our high net worth client’s second commercial purchase through Rethink Investing. They required a high yielding property with multiple income streams. We exceeded their expectations and secured this modern tenanted neighborhood shopping centre. Constructed in 2008, the property consists of 5 tenancies including a drive-thru offering and 20 dedicated car spaces.

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