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Purchased

Freehold medical centre!

  • Total current rent $224,662.44 pa
  • Built in 2002
  • 3 medical tenants

Purchase Details

Asking Price

$4,484,000

Purchase Price

$4,084,000

Deposit (assuming 70% debt) - 30%

$1,225,200

Stamp Duty

$202,610

Building Report*

$600

Solicitor Costs

$7,000

Valuation

$3,000

Total Cash Required

$1,438,410

Purchase Price + Purchasing Costs

$4,297,210

Net Annual Cash Flow Return

$224,662

Net Yield on Property

5.50%

Net Yield Accounting for Purchase Costs

5.23%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,438,410

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

$85,764

Return on Equity (pure cash flow return):

9.66%

Return on Equity with a 5% Capital Growth Rate:

23.85%

Return on Equity with a 7% Capital Growth Rate:

29.53%

Return on Equity with a 10% Capital Growth Rate:

38.05%

*approximate numbers

Building Type: Retail
Building Area: 721sqm

NLA: 2,024sqm
WALE: 2

How we helped this client

This property is a triple tenanted medical investment purchased off-market by the Rethink Investing acquisitions team. The property is fully leased and is anchored by Sonic Health, a major national medical group, plus a pharmacy and specialist clinic. Our first-time client extensive experience in the medical industry meant they could potentially add even more value to this property compared to the average investor. Recession-proof assets, such as medical centres have never been in more demand compared to now. So purchasing this off-market was a major advantage. .

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