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Purchased

Industrial deal review

  • 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

Purchase Details

Asking Price

$5,750,000

Purchase Price

$5,500,000

Deposit (assuming 65% debt) - 35%

$1,925,000

Stamp Duty

$318,057.70

Building Report*

$1,000

Solicitor Costs

$8,500

Valuation

$5,000

Total Cash Required

$2,257,557.70

Purchase Price + Purchasing Costs

$5,832,557.70

Net Annual Cash Flow Return

$360,000

Net Yield on Property

6.55%

Net Yield Accounting for Purchase Costs

6.17%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$2,257,557.70

Cost of loan (assume 5.75% pa on 65% debt):

$205,562.50

Return on Equity (pure cash flow return):

6.84%

Return on Equity with a 5% Capital Growth Rate:

19.02%

Return on Equity with a 7% Capital Growth Rate:

23.89%

Return on Equity with a 10% Capital Growth Rate:

31.20%

*approximate numbers

Building Type: Industrial
Building Area: 2,698m2

Land Area: 4,452m2
WALE: 3

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.



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