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Purchased

Entire shopping complex!

  • Abundant onsite parking (approx. 27 bays)
  • Generous depreciation scheme
  • Anchored by established long term national tenant: NightOwl – on a 7 year lease with two five year options

Purchase Details

Asking Price

$5,500,000

Purchase Price

$5,180,000

Deposit (assuming 70% debt) - 30%

$1,554,000

Stamp Duty

$297,269

Building Report*

$900

Solicitor Costs

$9,500

Valuation

$4,000

Total Cash Required

$1,865,669

Purchase Price + Purchasing Costs

$5,491,669

Net Annual Cash Flow Return

$315,990

Net Yield on Property

6.10%

Net Yield Accounting for Purchase Costs

5.75%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,865,669

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

$108,780

Return on Equity (pure cash flow return):

11.11%

Return on Equity with a 5% Capital Growth Rate:

24.99%

Return on Equity with a 7% Capital Growth Rate:

30.54%

Return on Equity with a 10% Capital Growth Rate:

38.87%

*approximate numbers

Building Type: Retail
Building Area: 419m2

NLA: 2,597m2
WALE: 2.5

How we helped this client

This is our valued client’s first purchase with Rethink Investing.
We had to exit out of an industrial property purchase contract that was unconditional before this purchase. Our due-diligence team found an issue with that asset. However, this one was a great and clean deal. We found some discrepancies in the income, resulting in a $70,000 discount on the price. Our client is now unconditional on this one of a kind asset.

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