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Purchased

Double income asset

  • Two quality tenants on long leases
  • Fixed 3.5% & 3.75% annual rental increases
  • Modern centre built in 2007

Purchase Details

Asking Price

$2,700,000

Purchase Price

$2,590,000

Deposit (assuming 70% debt) - 30%

$770,000

Stamp Duty

$118,157

Building Report*

$900

Solicitor Costs

$7,000

Valuation

$3,500

Total Cash Required

$906,557

Purchase Price + Purchasing Costs

$2,719,557

Net Annual Cash Flow Return

$152,212

Net Yield on Property

5.88%

Net Yield Accounting for Purchase Costs

5.60%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$906,557

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

$72,520

Return on Equity (pure cash flow return):

8.79%

Return on Equity with a 5% Capital Growth Rate:

23.08%

Return on Equity with a 7% Capital Growth Rate:

28.79%

Return on Equity with a 10% Capital Growth Rate:

37.36%

*approximate numbers

Building Type: Commercial
Building Area: 349m2

NLA: /
WALE: 5.8

How we helped this client

We helped our client secure this premium retail asset in Canberra and completed all the due diligence for a successful acquisition. This is our valued client’s first purchase with Rethink Investing. They are a very experienced investor who own many residential properties. They are now transitioning into quality commercial investments like this one.

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