Purchased High yield shopping centre! Location: Townsville Commercial Type: Freehold shopping centre with 11 tenants Total current net rent: $254,000 (after 100% of the outgoings) Purchase Details Asking Price $3,800,000 Purchase Price $3,410,000 Deposit (assuming 70% debt) - 30% $1,023,000 Stamp Duty $188,945 Building Report* $1,300 Solicitor Costs $8,500 Valuation $5,000 Total Cash Required $1,226,745 Purchase Price + Purchasing Costs $3,613,745 Net Annual Cash Flow Return $254,000 Net Yield on Property 7.45% Net Yield Accounting for Purchase Costs 7.03% Cash-On-Cash Returns Deposit Needed = 30% + Costs: $1,226,745 Cost of loan (assume 3% pa on 70% debt): $71,610 Return on Equity (pure cash flow return): 14.87% Return on Equity with a 5% Capital Growth Rate: 28.77% Return on Equity with a 7% Capital Growth Rate: 34.33% Return on Equity with a 10% Capital Growth Rate: 42.66% *approximate numbers Building Type: Commercial Building Area: 826m2 NLA: 3,077m2 WALE: How we helped this client This is our valued client’s first purchase with Rethink Investing. One of their requirements was to get a 7% net yield or better, which is very difficult in this market. However, using our strong contacts in the industry we were able to secure this asset off-market for our client earlier this year. It’s a proven successful centre with some A-grade tenants such as BWS, Domino’s and a range of other tenants who have been trading out of the centre for many years. After the due-diligence process went smoothly and this asset settled, our client is now on the hunt for their next commercial property. More properties Contact Us Get in touch If you’re interested in joining the lucrative world of commercial property, contact us now. *required fields Name* first name last name Phone*Email* Date Lead Submitted Date Format: DD slash MM slash YYYY PhoneThis field is for validation purposes and should be left unchanged.