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Purchased

Brand new convenience centre

  • Annual net yield: $ 963,005 (after subtracting all outlays including management fees and land tax)
  • Construction Area: Sturdy 5,248m2 of Net Leasable Area
  • Location: Perth, WA

Purchase Details

Asking Price

$16,000,000

Purchase Price

$14,900,000

Deposit (assuming 65% debt) - 35%

$5,215,000

Stamp Duty

$761,810.70

Building Report*

$2000

Solicitor Costs

$15,000

Valuation

$10,000

Total Cash Required

$6,003,810.70

Purchase Price + Purchasing Costs

$15,688,810.70

Net Annual Cash Flow Return

$963,005

Net Yield on Property

6.46%

Net Yield Accounting for Purchase Costs

6.14%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$6,003,810.70

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

$605,312.50

Return on Equity (pure cash flow return):

5.96%

Return on Equity with a 5% Capital Growth Rate:

18.37%

Return on Equity with a 7% Capital Growth Rate:

22.33%

Return on Equity with a 10% Capital Growth Rate:

30.78%

*approximate numbers

Building Type: Retail
Building Area: 5,248m2

Land Area: 10,090m2
WALE:

This brand-new convenience centre comes with six influential tenants including McDonalds, KFC, and a premier childcare operator, featuring an average lease term of 12.2 years. With a yield of 6.46%, locked-in rental/capital growth, and substantial tax deduction, This makes it one of the best-returning assets in the country.

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