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Purchased

2014 constructed industrial warehouse!

  • 10+3+3 year lease
  • Includes 600m2 of modern freezer room space
  • Total current net rent: $156,870 (after 100% of the outgoings)

Purchase Details

Asking Price

$2,800,000

Purchase Price

$2,550,000

Deposit (assuming 70% debt) - 30%

$765,000

Stamp Duty

$123,303

Building Report*

$900

Solicitor Costs

$8,000

Valuation

$3,500

Total Cash Required

$900,703

Purchase Price + Purchasing Costs

$2,685,703

Net Annual Cash Flow Return

$156,870

Net Yield on Property

6.15%

Net Yield Accounting for Purchase Costs

5.84%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$900,703

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

$53,550

Return on Equity (pure cash flow return):

11.47%

Return on Equity with a 5% Capital Growth Rate:

25.63%

Return on Equity with a 7% Capital Growth Rate:

31.29%

Return on Equity with a 10% Capital Growth Rate:

39.78%

*approximate numbers

Building Type: Industrial
Building Area: 1,200m2

NLA: 1,832m2
WALE: 10

How we helped this client

Our client was buying in a partnership and was looking for a low-risk investment play. As a result, they focused on an industrial property with a strong lease. This asset was perfect as it came with an impressive 10-year lease. There should be some good capital growth for this asset due to the swiftly tightening industrial market in the area.

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