Join Rethink Commercial Education - Sign up for the 3rd exclusive cohort waiting list!

Purchased

High-yielding multi-tenanted shopping centre

  • Net Return $759,873pa
  • Corner site with 225 A-grade parking bays
  • 10 year lease to IGA anchor tenant expiring 2027

Purchase Details

Asking Price

$10,000,000

Purchase Price

$9,250,000

Deposit (assuming 70% debt) - 30%

$2,775,000

Stamp Duty

$469,693

Building Report*

$1,500

Solicitor Costs

$5000

Valuation

$4,000

Total Cash Required

$3,255,193

Purchase Price + Purchasing Costs

$9,730,193

Net Annual Cash Flow Return

$759,873

Net Yield on Property

8.21%

Net Yield Accounting for Purchase Costs

7.81%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$3,255,193

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

$194,250

Return on Equity (pure cash flow return):

17.38%

Return on Equity with a 5% Capital Growth Rate:

31.58%

Return on Equity with a 7% Capital Growth Rate:

37.27%

Return on Equity with a 10% Capital Growth Rate:

45.79%

*approximate numbers

Building Type: Shopping centre
Building Area: 3152m2

Land Area: 11,204 sqm corner site
WALE: 4.8 (by income)

How we helped this client

This was our clients first commercial purchase and they were looking for a high yielding multi-tenant investment. We viewed a number of assets together before landing on this shopping centre. It was the highest yielding shopping centre available in Australia at the time. So we were lucky to secure this great investment for our client. Even after the mortgage costs this investment clears over $500,000pa in passive income!

More properties

Contact Us