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Purchased

Exceptional Industrial Investment in Tasmania!

 

Strategically located in a light industrial estate near major transport links, just 9 km from Hobart’s CBD, this property is a rare find in Hobart’s tight industrial market. Demand for such properties is high, making it a sustainable and lucrative investment asset. What makes this property special is the rents were about 25% below market value, this indicates a major upside.

Purchase Details

Asking Price

$3,400,000

Purchase Price

$3,050,000

Deposit (assuming 70% debt) - 30%

$915,000

Stamp Duty

$132,820.37

Building Report*

$1,200

Solicitor Costs

$8,000

Valuation

$4,000

Total Cash Required

$1,061,020.37

Purchase Price + Purchasing Costs

$3,196,020.37

Net Annual Cash Flow Return

$188,992

Net Yield on Property

6.20%

Net Yield Accounting for Purchase Costs

5.91%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,061,020.37

Cost of loan (assume 6.5% pa on 70% debt):

$138,755

Return on Equity (pure cash flow return):

4.73%

Return on Equity with a 5% Capital Growth Rate:

19.11%

Return on Equity with a 7% Capital Growth Rate:

24.86%

Return on Equity with a 10% Capital Growth Rate:

33.48%

*approximate numbers

279,906.25

Building Type: Industrial

WALE: 6.5 years

Total Land Area: 3,055m2

Total Building Area: 1,902m2

  • Multi-Tenanted with A-Grade Offices and Warehouses
  • Long-Term Tenants: RTC Group and King Trailer Industries
  • Currently Under-Rented, Promising Strong Future Capital Growth
  • Over 37m2 of Street Frontage
  • “Light Industrial” Zoning Overlay
  • 3 + 3 and 3 + 3 + 3 Year Lease Terms
  • Fixed Annual 3% Increases
  • Less than 500m from Major Glenorchy Shopping Precinct
  • Durable Construction with Concrete Flooring and Metal Clad Construction
  • Depreciation Benefits Boosting After-Tax Returns

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