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Purchased

Freehold Shopping Centre

  • NET Annual income of $1,531,722 p.a + GST (this is after rental management and land tax)
  • 100% occupied with 17 tenancies providing a diverse tenancy mix
  • Modern centre with high percentage of medical & essential service tenants

Purchase Details

Asking Price

$26,000,000

Purchase Price

$23,000,000

Deposit (assuming 65% debt) - 35%

$8,050,000

Stamp Duty

$1,392,942.70

Building Report*

$3,500

Solicitor Costs

$15,000

Valuation

$12,000

Total Cash Required

$9,473,442.70

Purchase Price + Purchasing Costs

$24,423,442.70

Net Annual Cash Flow Return

$1,531,722.40

Net Yield on Property

6.80%

Net Yield Accounting for Purchase Costs

6.66%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$9,473,442.70

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

$897,000

Return on Equity (pure cash flow return):

6.70%

Return on Equity with a 5% Capital Growth Rate:

18.84%

Return on Equity with a 7% Capital Growth Rate:

23.69%

Return on Equity with a 10% Capital Growth Rate:

30.98%

*approximate numbers

Building Type: Retail
Building Area: 3,404m2

Land Area: 9420m2
WALE:

By purchasing directly from the fund manager, Rethink Investing secured this strong performing mixed use centre off-market for $23 million. The valuation came in at $25 million at the time of purchase. Indicating $2 million in instant equity! Note – with interest rates peaking, now could be the best time to secure a life changing commercial investment like this. Right before the next boom starts!



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