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Purchased

76 incomes in one deal!

  • Significant land holding of 2.11ha
  • 76 tenants
  • 7.8% net yield

Purchase Details

Asking Price

$10,000,000

Purchase Price

$9,550,000

Deposit (assuming 70% debt) - 30%

$3,342,500

Stamp Duty

$564,713

Building Report*

$3,000

Solicitor Costs

$9,000

Valuation

$6,000

Total Cash Required

$3,925,213

Purchase Price + Purchasing Costs

$10,132,713

Net Annual Cash Flow Return

$745,352

Net Yield on Property

7.80%

Net Yield Accounting for Purchase Costs

7.36%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$3,925,213

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

$186,225

Return on Equity (pure cash flow return):

14.24%

Return on Equity with a 5% Capital Growth Rate:

26.41%

Return on Equity with a 7% Capital Growth Rate:

31.28%

Return on Equity with a 10% Capital Growth Rate:

38.57%

*approximate numbers

Building Type: Industrial
Building Area: 2.11ha

NLA: 9,355m2
WALE: 2.25

How we helped this client

Secured by the Rethink Investing team for our valued client. This substantial asset features two street access over four titles. Incredibly this property came with 76 separate tenancies! We purchased this well below replacement value as well. Our client employed Rethink Investing to find them a very high yielding asset. They had a requirement to have multiple incomes and value add opportunities. This investment was perfect for them. We are now currently in the process of finding them another even larger asset.

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