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Purchased
Industrial deal review
This is our clients' second purchase with Rethink Investing. They were looking for a A-class industrial asset to match their already large portfolio of similar assets. This investment will provide them with a strong cash return from a diverse income spread of four tenants.
Purchase Details
Asking Price
5750000
Purchase Price
5500000
Deposit (assuming
65
% debt)
1925000
Stamp Duty
318057.7
Building Report*
1000
Solicitor Cost*
8500
Valuation*
5000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
2257557.7
Purchase Price + Purchasing Cost
5832557.7
Net Annual Cash Flow Return
360000
Net Yield on Property
6.55
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.17
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2257557.7
Cost of Loan
(Assume
5.75
% pa on
65
% debt)
205562.5
Return of Equity
(Pure cash flow return)
6.84
%
Return of Equity with a
5% Capital Growth Rate:
19.02
%
Return of Equity with a
7% Capital Growth Rate:
23.89
%
Return of Equity
10% Capital Growth Rate:
31.2
%
*approximate number
Key Highlights
• Building Area: 2,698m2
• Land Area: 4,452m2
• Annual income of $360,000pa net + GST (taking into account land tax, property management and all other property outgoings
• 24hr industrial zone
• Excellent depreciation, near new build
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