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Purchased

Quality industrial asset just north of Brisbane!

  • Concrete tilt panel construction
  • Container height roller door
  • 3+3+3 year lease

Purchase Details

Asking Price

$550,000

Purchase Price

$490,000

Deposit (assuming 70% debt) - 30%

$147,000

Stamp Duty

$17,116

Building Report*

$500

Solicitor Costs

$4,500

Valuation

$2,000

Total Cash Required

$171,116

Purchase Price + Purchasing Costs

$514,116

Net Annual Cash Flow Return

$29,500

Net Yield on Property

6.02%

Net Yield Accounting for Purchase Costs

5.74%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$171,116

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

$8,575

Return on Equity (pure cash flow return):

12.23%

Return on Equity with a 5% Capital Growth Rate:

26.55%

Return on Equity with a 7% Capital Growth Rate:

32.27%

Return on Equity with a 10% Capital Growth Rate:

40.86%

*approximate numbers

Building Type: Retail
Building Area: N/A

NLA: 197m2
WALE: N/A

How we helped this client

This was our valued clients first purchase through Rethink Investing. They were looking for a 6% net return to an established tenant. They were also targeting industrial as this is where they felt most comfortable. This is a quality industrial investment just north of Brisbane. The tenant has been in business since 1993 and the current lease is 3+3+3 year, resulting in a 6% net return for our client.

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