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Purchased
Entry level industrial complex
Our valued client was a first time commercial investor and needed our help securing a property that would give them the comfort of easy relatability. Purchased in a booming industrial market, off-market and for an exceptional below market value price, assets like this industrial complex currently sell for under 6% net. We were delighted in securing this asset considering its strength and that of the market.
Purchase Details
Asking Price
500000
Purchase Price
465000
Deposit (assuming
70
% debt)
139500
Stamp Duty
16000
Building Report*
500
Solicitor Cost*
3500
Valuation*
1200
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
500000
Total Cash Required
160700
Purchase Price + Purchasing Cost
486200
Net Annual Cash Flow Return
29400
Net Yield on Property
6.32
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.05
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
160700
Cost of Loan
(Assume
3
% pa on
70
% debt)
9765
Return of Equity
(Pure cash flow return)
12.22
%
Return of Equity with a
5% Capital Growth Rate:
26.69
%
Return of Equity with a
7% Capital Growth Rate:
32.47
%
Return of Equity
10% Capital Growth Rate:
41.15
%
*approximate number
Key Highlights
• Building Area: 155m2
• Land Area: 200m2
• Long standing tenants on a 2+2 year lease
• Purchase price of $465,000
• Entry level asset
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