Purchased

High-yielding shopping centre investment!

  • $774,000 net income
  • 15 tenants
  • Significant land holding of 17,500m2

Building Type: Retail
Building Area: 4,391m2

NLA: 17,500m2
WALE: 6

How we helped this client

A longstanding off-market, trophy commercial investment with quality tenants, such as ALDI, IGA, a new childcare centre, a medical centre, a pharmacy, plus 10 other tenancies.

We love these types of investments due to their recession-proof nature. This investment clears an incredible $384,975 per annum of passive income each year, after outgoings and costs are subtracted!

Our directors Scott and Mina O’Neill, ended up purchasing this property. Initially, our agents sent this property to a client like always. However, they passed on the property, as did the next client. After a couple of clients declined the deal, Scott and Mina ended up purchasing the property, thinking this deal was just too good to waste.

This shopping centre was rejected for the simple reason that it was not located on the east coast. Scott commented, “As an investor, this is one of my great mysteries of life. Why do people feel the need to invest only close to where they live? The common comments are that they want to be able to drive past the property often. Well, this is what managers are for. At no point will an owner be required to go out and change light bulbs, clean toilets, or carry out repairs themselves, especially at this price point. There are skilled professional property managers who manage all of this for you. Plus, they create monthly reports, which summarise the financials and maintenance program of the asset. Also, if this deal was in Brisbane (an equivalent-sized city), instead of the asset being $11,400,000, it would have been over $17,000,000. So you need to ask yourself, is it worth sacrificing great returns just so you can sit outside your property on a regular basis? For me, no; however, I understand this makes people feel comfortable. I guess this is where all investors are built differently.”

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