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Purchased

Modern retail centre

  • 100% leased investment, all being national and chain traders – Supercheap Auto (300+ stores); Prices Plus (30+ stores) Domino’s (860+ stores)
  • Very strong rental growth build into leases (CPI+1.5% annually)
  • Strong lease profile (WALE) – The centre features a WALE of 5.1^ years by income

Purchase Details

Asking Price

$9,500,000

Purchase Price

$9,000,000

Deposit (assuming 70% debt) - 30%

$2,700,00

Stamp Duty

$531,053

Building Report*

$1,000

Solicitor Costs

$9,500

Valuation

$4,500

Total Cash Required

$3,246,053

Purchase Price + Purchasing Costs

$9,546,053

Net Annual Cash Flow Return

$497,160

Net Yield on Property

5.52%

Net Yield Accounting for Purchase Costs

5.21%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$3,246,053

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

$189,000

Return on Equity (pure cash flow return):

9.49%

Return on Equity with a 5% Capital Growth Rate:

23.36%

Return on Equity with a 7% Capital Growth Rate:

28.90%

Return on Equity with a 10% Capital Growth Rate:

37.22%

*approximate numbers

Building Type: Commercial
Building Area: 1,545m2

NLA: 5,914m2
WALE: 5

How we helped this client

We helped our client secure and complete all the due diligence on this modern retail centre. The asset incorporates three (3) national and chain brand tenancies including Supercheap Auto, Prices Plus and Domino’s Pizza plus an Amazon storage locker. The centre features a strong lease expiry profile (WALE) of over 5 years by income with all tenants secured on net leases.
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​This is our valued client’s first purchase with Rethink Investing. They are successful businessmen who are looking to set up a passive income independent of their business. Their requirements were to target low-risk and high-quality commercial properties that would produce strong rental growth over time. This asset ticked all the boxes.

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