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Newly Built Retail Asset with 5-Year Lease on the Sunshine Coast

Our team have secured an exceptional investment opportunity in a newly built retail asset on the Sunshine Coast. Secured with a new 5-year lease and 2 x 5-year options, this property is set to benefit from 3% fixed annual rent increases and a tenant-friendly net lease structure, with all outgoings covered, including management fees. This low-maintenance asset promises steady cash flow in one of Australia’s most active economic regions.

Purchase Details
Asking Price
1500000
Purchase Price
1132000
Deposit (assuming
65
% debt)
339600
Stamp Duty
41615
Building Report*
1000
Solicitor Cost*
6000
Valuation*
3000
Other Fees* (Depreciation
report, bank fees)
21508
Total Cash Required
416723
Purchase Price + Purchasing Cost
1209123
Net Annual Cash Flow Return
67890
Net Yield on Property
6
%
Net Yield Accounting for
Purchasing Costs
5.61
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
416723
Cost of Loan
(Assume
6.25
% pa on
65
% debt)
49525
Return of Equity
(Pure cash flow return)
4.41
%
Return of Equity with a
5% Capital Growth Rate:
25.47
%
Return of Equity with a
7% Capital Growth Rate:
30.9
%
Return of Equity
10% Capital Growth Rate:
39.05
%
*approximate number

Key Highlights

• High-profile location

• Tier 1 infrastructure in a fast-growing area

• 5-year lease term with options until 2039

• 3% annual rental increases

• Good depreciation benefits due to new build status

• Single tenant – Pilates Studio, Australia’s only 24/7 Reformer Pilates franchise

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