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Purchased

Multi-tenant Freehold Investment

  • Dual tenant industrial warehouse and commercial building
  • Net income of $767,000 (after 100% of outgoings including mgt fees and land tax)
  • Location: Brisbane, QLD
  • Ability to add additional GFA (STCA)

Purchase Details

Asking Price

$13,000,000

Purchase Price

$12,275,000

Deposit (assuming 65% debt) - 35%

$4,296,250

Stamp Duty

$734,211.36

Building Report*

$2,500

Solicitor Costs

$15,000

Valuation

$10,000

Total Cash Required

$5,057,961.36

Purchase Price + Purchasing Costs

$13,036,711.36

Net Annual Cash Flow Return

$767,000

Net Yield on Property

6.25%

Net Yield Accounting for Purchase Costs

5.88%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$5,057,961.36

Cost of loan (assume 6% pa on 65% debt):

$478,725

Return on Equity (pure cash flow return):

5.70%

Return on Equity with a 5% Capital Growth Rate:

17.83%

Return on Equity with a 7% Capital Growth Rate:

22.69%

Return on Equity with a 10% Capital Growth Rate:

29.97%

*approximate numbers

Building Type: Industrial and Commercial
Building Area: 5,465m2

Land Area: 13,500m2
WALE: 7.9 Years

This highly desired dual tenant industrial warehouse and commercial building is located 14km from the Brisbane CBD. With multiple tenants providing a strong cash flow, this property holds the potential for long-term growth. The rental income for both tenants is subject to CPI increases, which currently stand at almost 7%. This indicates rapid rental growth. With a weighted average lease expiry (WALE) of nearly 8 years, this property presents a significant opportunity for capital appreciation.

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