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Purchased
High yielding warehouse with a 5+5+5 year lease
Boasting a very strong 5+5 year lease at a high yield, high-quality industrial assets like this are increasingly hard to find. Our valued client was looking for a high yielding industrial asset with a long lease. The long lease made finance easier and the purchase more comfortable. We secured this property at a net yield of 7.27% which was higher than anything else in the local area.
Purchase Details
Asking Price
1800000
Purchase Price
1650000
Deposit (assuming
70
% debt)
577500
Stamp Duty
81000
Building Report*
900
Solicitor Cost*
4000
Valuation*
1500
Other Costs*
81600
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
1800000
Total Cash Required
664000
Purchase Price + Purchasing Cost
1737400
Net Annual Cash Flow Return
120000
Net Yield on Property
7.27
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.91
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
664900
Cost of Loan
(Assume
3
% pa on
70
% debt)
34650
Return of Equity
(Pure cash flow return)
12.84
%
Return of Equity with a
5% Capital Growth Rate:
25.24
%
Return of Equity with a
7% Capital Growth Rate:
30.21
%
Return of Equity
10% Capital Growth Rate:
37.65
%
*approximate number
Key Highlights
• Building Area: 1600m2
• Land Area: 2,685m2
• $120,000 pa +GST + Outgoings
• Rock solid 5+5+5 year lease
• Lease to a national food company
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