Purchased

Off-market shopping centre

  • 225 car parks with on grade and security basement parking
  • 100% occupied with 17 tenancies providing a diverse tenancy mix
  • High exposure road with over 35,000* vehicles per day

Purchase Details

Asking Price

$25,500,000

Purchase Price

$23,000,000

Deposit (assuming 70% debt) - 30%

$6,900,000

Stamp Duty

$1,387,853

Building Report*

$2,500

Solicitor Costs

$12,000

Valuation

$7,000

Total Cash Required

$8,309,353

Purchase Price + Purchasing Costs

$24,409,353

Net Annual Cash Flow Return

$1,476,000

Net Yield on Property

6.42%

Net Yield Accounting for Purchase Costs

6.05%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$8,309,353

Cost of loan (assume 4% pa on 70% debt):

$483,000

Return on Equity (pure cash flow return):

11.95%

Return on Equity with a 5% Capital Growth Rate:

25.79%

Return on Equity with a 7% Capital Growth Rate:

31.33%

Return on Equity with a 10% Capital Growth Rate:

39.63%

*approximate numbers

Building Type: Commercial
Building Area: 3,404m2

NLA: 9,420m2
WALE:

How we helped this client

We helped our client secure this shopping centre off-market and completed all the due diligence for a successful acquisition. This is our valued client’s second large purchase with Rethink Investing. They are very experienced commercial investors who own properties in multiple countries. As we speak, we are now on the hunt for another similar large asset.

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