High-Yield Commercial Property Investment in Fast-Growing Victorian Town

Our team has secured a prime freehold corner site, offering a high-yield investment with strong growth potential and long-term security for our client. With approximately 24,000 vehicles passing daily, the property enjoys exceptional visibility and accessibility.

Located in Victoria’s fastest-growing town, with a population of 43,183 projected to rise by 21.33% by 2036, this property is positioned to benefit from increasing demand for commercial spaces.

Significant upside exists in both rental income and capital value, with opportunities to convert existing spaces for higher-paying tenants. Additionally, investors can take advantage of a potential 50% stamp duty saving, equating to an upfront saving of $209,375, boosting the investment's financial appeal.

Purchase Details

Asking Price

6750000

Purchase Price

6400000

Deposit (assuming

% debt)

2240000

Stamp Duty

199872.25

Building Report*

1500

Solicitor Cost*

9000

Valuation*

4000

Other Fees* (Depreciation
report, bank fees)

117860

Total Cash Required

2572232.25

Purchase Price + Purchasing Cost

6753132.25

Net Annual Cash Flow Return

535000

Net Yield on Property

8.36

Net Yield Accounting for
Purchasing Costs

7.92

Cash-OnCash Returns

Deposit Needed =

% + Costs

2572232.25

Cost of Loan

(Assume

6.5

% pa on

% debt)

270400

Return of Equity

(Pure cash flow return)

10.2

Return of Equity with a

5% Capital Growth Rate:

22.54

Return of Equity with a

7% Capital Growth Rate:

27.48

Return of Equity

10% Capital Growth Rate:

34.88

*approximate number

Key Highlights

3,811sqm two level freehold building with lift.
Diverse income streams• Anchored by VIC Gov Dept of Education with recent $400k tenant funded fit-out upgrade.
20 corporate office suites on level 1 with reception, boardroom and kitchen.
Fixed 3% annual rent increases and annual CPI reviews.
41 secure car spaces (16 undercover)
2,811sqm corner site across two titles with 107 metres of combined street frontage.
High profile CBD position on busy High Street with 24,000 vehicles passing daily.
Flexibility with future redevelopment/subdivision upside STCA.