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Purchased
High yielding asset with multiple income streams
This property was our high net worth client’s second commercial purchase through Rethink Investing. They required a high yielding property with multiple income streams. We exceeded their expectations and secured this modern tenanted neighborhood shopping centre. Constructed in 2008, the property consists of 5 tenancies including a drive-thru offering and 20 dedicated car spaces.
Purchase Details
Asking Price
6200000
Purchase Price
5750000
Deposit (assuming
70
% debt)
1725000
Stamp Duty
332149
Building Report*
1400
Solicitor Cost*
6000
Valuation*
3000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
6200000
Total Cash Required
2067549
Purchase Price + Purchasing Cost
6902549
Net Annual Cash Flow Return
444000
Net Yield on Property
7.72
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
7.29
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2067549
Cost of Loan
(Assume
3
% pa on
70
% debt)
120750
Return of Equity
(Pure cash flow return)
15.63
%
Return of Equity with a
5% Capital Growth Rate:
29.54
%
Return of Equity with a
7% Capital Growth Rate:
35.1
%
Return of Equity
10% Capital Growth Rate:
43.45
%
*approximate number
Key Highlights
• Building Area: 787m2
• Land Area: 3,023m2
• Annual Net Rental: $444,000pa + GST + Outgoings
• 20 dedicated parking spaces
• 5 tenancies
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