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Purchased

Tier 1 Infrastructure with National Tenant on 5×5 Lease Term.

 

This is a truly blue-chip investment opportunity completed by the team rethink investing team. Brand new 5-year lease with Repco Group, backed by a global auto giant parent company, as added security. Net income of $225,000, offering a net yield of 6%.

The tenant pays all outgoings including land tax, strata fees and building insurance (excluding property management), which makes this a very attractive asset, along with 3% annual increases to the rent.

Purchase Details

Asking Price

$3,950,000

Purchase Price

$3,750,000

Deposit (assuming 65% debt) - 35%

$1,312,500

Stamp Duty

$164,320.37

Building Report*

$1,200

Solicitor Costs

$9,000

Valuation

$4,000

Total Cash Required

$1,491,020.37

Purchase Price + Purchasing Costs

$3,928,520.57

Net Annual Cash Flow Return

$225,000

Net Yield on Property

6%

Net Yield Accounting for Purchase Costs

5.73%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$1,491,020.37

Cost of loan (assume 6.25% pa on 65% debt):

$152,343.75

Return on Equity (pure cash flow return):

4.87%

Return on Equity with a 5% Capital Growth Rate:

17.45%

Return on Equity with a 7% Capital Growth Rate:

22.48%

Return on Equity with a 10% Capital Growth Rate:

30.02%

*approximate numbers

Building Type: Retail
Building area: 801m2

✓ Location: Launceston, Tasmina

✓ Net income of $225,000 (after 100% of outgoings including mgt fees and land tax)

✓ Building: 801m2 (built in 2010)

✓ Other: Invaluable 37 car spaces on site including 3 on title

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