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Purchased

Entry level industrial complex

Our valued client was a first time commercial investor. They needed our help securing a property that would give them the comfort of easy relatability. We found this perfect off-market industrial asset for them and carried out 100% of the due-diligence. It passed our rigorous process from a numbers, tenant, lease and building point of view. Purchased in a booming industrial market off-market and below market value price, assets like this currently sell for under 6% net so we 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*
1200
Valuation*
3500
Other Fees* (Depreciation
report, bank fees)
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
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: NLA: 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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