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Purchased

Multi-tenant investment

  • Main road exposure
  • High quality dependable tenants
  • 6 separate incomes on the asset

Purchase Details

Asking Price

$3,500,000

Purchase Price

$3.050,000

Deposit (assuming 70% debt) - 30%

$915,000

Stamp Duty

$149,153

Building Report*

$900

Solicitor Costs

$7,000

Valuation

$3,500

Total Cash Required

$1,075,553

Purchase Price + Purchasing Costs

$3,210,553

Net Annual Cash Flow Return

$212,000

Net Yield on Property

6.95%

Net Yield Accounting for Purchase Costs

6.60%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,075,553

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

$85,400

Return on Equity (pure cash flow return):

11.77%

Return on Equity with a 5% Capital Growth Rate:

25.95%

Return on Equity with a 7% Capital Growth Rate:

31.62%

Return on Equity with a 10% Capital Growth Rate:

40.13%

*approximate numbers

Building Type: Commercial
Building Area: 1013m2

NLA: 2,016m2
WALE: 2.5

How we helped this client

We secured this great investment off-market for our client. The property is located on a highly visible and exposed corner. There was upside in the deal as well as a very high yield from day one This is our clients first purchase with Rethink Investing. They were looking for a multi-tenant investment with some upside. This deal matched their requirements as there are two vacancies we could fill in this asset to send the yield north of 7.5% net. We managed to extend a lease and fill a vacancy in the due-diligence period. This has no doubt created instant equity before the asset even settled. We are now on the hunt for property number two for them.

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