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Purchased
Multi tenant medical centre
Our client was an experienced investor who wanted to add a high yielding commercial property to their portfolio. This property fitted their brief of generating a multiple income, being a high yielding medical or industrial asset and located in a growth corridor. This well-kept fully leased standalone medical investment on a prominent corner lot was purchased off-market, which helped us pick the property up at an attractive price.
Purchase Details
Asking Price
3150000
Purchase Price
2950000
Deposit (assuming
70
% debt)
885000
Stamp Duty
160700
Building Report*
800
Solicitor Cost*
4500
Valuation*
3500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
3150000
Total Cash Required
1054500
Purchase Price + Purchasing Cost
1054500
Net Annual Cash Flow Return
222000
Net Yield on Property
7.53
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
7.12
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1054500
Cost of Loan
(Assume
3
% pa on
70
% debt)
61950
Return of Equity
(Pure cash flow return)
15.18
%
Return of Equity with a
5% Capital Growth Rate:
29.17
%
Return of Equity with a
7% Capital Growth Rate:
34.76
%
Return of Equity
10% Capital Growth Rate:
43.15
%
*approximate number
Key Highlights
• Building Area: 621m2
• Land Area: 1,429m2
• Three medical tenants on long leases
• Current Net Income: $222,000 + GST
• Prominent Corner positioning opposite major shopping centre
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