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Purchased

Golden opportunity with an exceptionally long lease

  • Annual Net Rental: $280,000pa + GST + Outgoings
  • 5+5+5+5 year lease
  • 20 dedicated parking spaces

Purchase Details

Asking Price

$4,700,000

Purchase Price

$4,450,000

Deposit (assuming 70% debt) - 30%

$1,335,000

Stamp Duty

$252,589

Building Report*

$600

Solicitor Costs

$5,500

Valuation

$2,000

Total Cash Required

$1,595,689

Purchase Price + Purchasing Costs

$4,710,689

Net Annual Cash Flow Return

$280,000

Net Yield on Property

6.29%

Net Yield Accounting for Purchase Costs

5.94%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,595,689

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

$93,450

Return on Equity (pure cash flow return):

11.69%

Return on Equity with a 5% Capital Growth Rate:

25.63%

Return on Equity with a 7% Capital Growth Rate:

31.21%

Return on Equity with a 10% Capital Growth Rate:

39.58%

*approximate numbers

Building Type: Industrial Asset
Building Area: 1,560m2

Land Area: 2,400m2
WALE: 5

How we helped this client

This property was sourced off-market and without competition for our seasoned commercial investor client. Looking for a quality industrial asset with a good yield in a capital city market, this investment ticked all the boxes for our valued client. Just 6.5kms from Brisbane’s CBD, this A-grade industrial asset boasts a 6.29 percent net return, and a secure tenant on a long lease; providing extra security for our valued client.

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