Join Rethink Commercial Education - Sign up for the 3rd exclusive cohort waiting list!

Purchased

High profile corner location with street appeal

  • Three secure long term tenants who have been there for 7-10 years
  • High growth corridor
  • Large land component of over 8,000m2 in a capital city

Purchase Details

Asking Price

$7,500,000

Purchase Price

$6,800,000

Deposit (assuming 70% debt) - 30%

30%: $2,040,000

Stamp Duty

$492,269

Building Report*

$1,500

Solicitor Costs

$5,000

Valuation

$5,000

Total Cash Required

$2,542,769

Purchase Price + Purchasing Costs

$7,302,769

Net Annual Cash Flow Return

$486,000

Net Yield on Property

7.15%

Net Yield Accounting for Purchase Costs

6.66%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$2,542,769

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

$142,800

Return on Equity (pure cash flow return):

13.50%

Return on Equity with a 5% Capital Growth Rate:

26.87%

Return on Equity with a 7% Capital Growth Rate:

32.22%

Return on Equity with a 10% Capital Growth Rate:

40.24%

*approximate numbers

Building Type: Office/warehouse
Building Area: 4,358m2

Land Area: 8,014m2
WALE: 3.5

How we helped this client

The industrial market is currently in a huge growth phase. This property was located in a market which has grown 10% in the last 12 months. Securing this off-market industrial asset at a +7% net yield in a market moving this fast was a very lucrative result for our valued client. We negotiated a great price in a competitive market, saving our client money which they can inject back into their portfolio.

More properties

Contact Us