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Purchased

High-yielding industrial asset with dual tenancy and international tenants

  • Annual Net Rental: $200,118 p/a
  • Concrete tilt panel construction
  • 2x buildings

Purchase Details

Asking Price

$3,000,000

Purchase Price

$2,800,000

Deposit (assuming 70% debt) - 30%

$840,000

Stamp Duty

$151,613

Building Report*

$800

Solicitor Costs

$5,500

Valuation

$2,000

Total Cash Required

$999,913

Purchase Price + Purchasing Costs

$2,959,913

Net Annual Cash Flow Return

$200,118

Net Yield on Property

7.15%

Net Yield Accounting for Purchase Costs

6.76%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$999,913

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

$58,800

Return on Equity (pure cash flow return):

14.13%

Return on Equity with a 5% Capital Growth Rate:

28.13%

Return on Equity with a 7% Capital Growth Rate:

33.73%

Return on Equity with a 10% Capital Growth Rate:

42.14%

*approximate numbers

Building Type: Industrial asset
Building Area: 1825m2

Land Area: 3907m2
WALE: 2.5

How we helped this client

This is our clients third purchase through Rethink Investing. This industrial asset was the perfect addition to their portfolio, as industrial was the one asset class they don’t already own. This site has a great dual tenancy offering with two buildings on the one lot. There is a great value add opportunity to strata title the lot, giving the buyer the ability to sell individually. The tenants in place operate internationally and are renowned names in the construction industry.

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