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Purchased

One of two side-by-side units

  • Lease to June 2026 with options to 2036
  • Established tenant with e-commerce driven business
  • Tenant pays all outgoings, including Land Tax and rental mgt (to 4% pa)

Purchase Details

Asking Price

$1,950,000

Purchase Price

$1,850,000

Deposit (assuming 70% debt) - 30%

$555,000

Stamp Duty

$87,123.10

Building Report*

$3,000

Solicitor Costs

$6,000

Valuation

$3,500

Total Cash Required

$654,623.10

Purchase Price + Purchasing Costs

$1,949,623.10

Net Annual Cash Flow Return

$111,000

Net Yield on Property

6.00%

Net Yield Accounting for Purchase Costs

5.69%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$654,623.10

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

$38,850

Return on Equity (pure cash flow return):

11.02%

Return on Equity with a 5% Capital Growth Rate:

25.15%

Return on Equity with a 7% Capital Growth Rate:

30.80%

Return on Equity with a 10% Capital Growth Rate:

39.28%

*approximate numbers

Building Type: Industrial
Building Area: 1100m2

NLA: 937m2
WALE: 3.5

How we helped this client

Purchased for a Rethink Investing client. This securely leased industrial warehouse is one of two side-by-side units located in a high-demand industrial precinct in Perth. Our client was looking for a low maintenance industrial asset with a strong tenant and long lease in place. They were open to most locations making this Perth Asset perfect for their brief. They are now the proud owners of this blue-chip investment.

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