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Purchased
One of two side-by-side units
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.
Purchase Details
Asking Price
1950000
Purchase Price
1850000
Deposit (assuming
70
% debt)
555000
Stamp Duty
87123.1
Building Report*
3000
Solicitor Cost*
6000
Valuation*
3500
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
654623.1
Purchase Price + Purchasing Cost
1949623.1
Net Annual Cash Flow Return
111000
Net Yield on Property
6
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.69
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
654623.1
Cost of Loan
(Assume
3
% pa on
70
% debt)
38850
Return of Equity
(Pure cash flow return)
11.02
%
Return of Equity with a
5% Capital Growth Rate:
25.15
%
Return of Equity with a
7% Capital Growth Rate:
30.8
%
Return of Equity
10% Capital Growth Rate:
39.28
%
*approximate number
Key Highlights
• Building Area: 1100m2
• NLA: 937m2
• 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)
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