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Purchased
High profile corner location with street appeal
The industrial market is currently in a huge growth phase. This property was located in a market which has grown 10% in the last 12 months. Securing this off-market industrial asset at a +7% net yield in a market moving this fast was a very lucrative result for our valued client. We negotiated a great price in a competitive market, saving our client money which they can inject back into their portfolio.
Purchase Details
Asking Price
7500000
Purchase Price
6800000
Deposit (assuming
70
% debt)
2040000
Stamp Duty
492269
Building Report*
1500
Solicitor Cost*
5000
Valuation*
5000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
7500000
Total Cash Required
2542769
Purchase Price + Purchasing Cost
7302769
Net Annual Cash Flow Return
486000
Net Yield on Property
7.15
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.66
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2542769
Cost of Loan
(Assume
3
% pa on
70
% debt)
142800
Return of Equity
(Pure cash flow return)
13.5
%
Return of Equity with a
5% Capital Growth Rate:
26.87
%
Return of Equity with a
7% Capital Growth Rate:
32.22
%
Return of Equity
10% Capital Growth Rate:
40.24
%
*approximate number
Key Highlights
• Building Area: 4,358m2
• Land Area: 8,014m2
• Three secure long term tenants who have been there for 7-10 years
• High growth corridor
• Large land component of over 8,000m2 in a capital city
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
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