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Purchased

Strong-performing freehold retail complex

  • Current net rent: $427,084pa net + GST
  • Blue-chip asset with national retailers underpinning 50% + revenue
  • Thriving neighbourhood shopping centre in a key growth corridor

Purchase Details

Asking Price

$7,000,000

Purchase Price

$6,360,000

Deposit (assuming 65% debt) - 35%

$2,226,000

Stamp Duty

$368,807

Building Report*

$1,500

Solicitor Costs

$10,000

Valuation

$5,000

Total Cash Required

$2,611,307

Purchase Price + Purchasing Costs

$6,745,307

Net Annual Cash Flow Return

$427,084

Net Yield on Property

6.72%

Net Yield Accounting for Purchase Costs

6.33%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$2,611,307

Cost of loan (assume 5.50% pa on 65% debt):

$227,370

Return on Equity (pure cash flow return):

7.65%

Return on Equity with a 5% Capital Growth Rate:

19.83%

Return on Equity with a 7% Capital Growth Rate:

24.70%

Return on Equity with a 10% Capital Growth Rate:

32.00%

*approximate numbers

Building Type: Retail
Building Area: 1,077m2

NLA: 2,576m2
WALE: 5.13

The asset is a strong-performing freehold retail complex in a prized Brisbane outer city location. The multi-tenanted neighbourhood shopping centre comes with a strong WALE of 5.13 years and national tenants underpinning more than 50% of its revenue. 

The investment clears over $199,714 in passive income for the new owner. This is after 100% of the outgoings and 65% of the mortgage costs at the current interest rates!

This is our client’s second property with Rethink Investing. They were looking for a larger asset to help set them up for life in retirement. This deal was a big step for our clients, but they were very happy with the end result. With $200,000pa in passive income, their income is now sufficient for a comfortable retirement. 



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