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Medical & retail multi-tenanted shopping centre

Initially we were planning an internal syndication with this asset, however, half way through the capital raise we found there was strong demand from one of our valued clients to acquire it in its entirety. They had a strong connection with the shopping center and purchased it for a long term yield play. The market has since tightened following yield compression, locking in high capital growth over the last two years, being worth at least $2.5 million more than what our client paid in 2021.

Purchase Details
Asking Price
13000000
Purchase Price
11800000
Deposit (assuming
70
% debt)
4130000
Stamp Duty
702409
Building Report*
2000
Solicitor Cost*
6000
Valuation*
6500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
13000000
Total Cash Required
4846909
Purchase Price + Purchasing Cost
12516909
Net Annual Cash Flow Return
965000
Net Yield on Property
8.18
%
Net Yield Accounting for
Purchasing Costs
7.71
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
4846909
Cost of Loan
(Assume
3
% pa on
70
% debt)
339283.65
Return of Equity
(Pure cash flow return)
15.16
%
Return of Equity with a
5% Capital Growth Rate:
27.33
%
Return of Equity with a
7% Capital Growth Rate:
32.2
%
Return of Equity
10% Capital Growth Rate:
39.51
%
*approximate number

Key Highlights

• Building Area: 2,616m2

• Land Area: 9,925m2

• Diverse tenancy mix including big name anchor tenants

• Well designed, modern centre with exposure to arterial roads

• 151 car parks and four street frontages

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