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Well-known and fully leased retail/childcare asset!

This well-known fully leased retail/childcare asset was purchased off-market by Rethink Investing Pty Ltd on behalf of our valued long term client for $13.45million.This is their fourth purchase through Rethink Investing. Our dedicated team completed all the due diligence on this property, which had some minor challenges in trying to work out the true net return. That aside this was a smooth purchase with a great end result for the client. The numbers worked out great with being a near 7% net return in a quality Brisbane suburb. Returns like this are very difficult to find in this hot market.

Purchase Details
Asking Price
14000000
Purchase Price
13450000
Deposit (assuming
70
% debt)
4707500
Stamp Duty
803393
Building Report*
1500
Solicitor Cost*
10000
Valuation*
6000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
14000000
Total Cash Required
5528393
Purchase Price + Purchasing Cost
14270893
Net Annual Cash Flow Return
921000
Net Yield on Property
6.85
%
Net Yield Accounting for
Purchasing Costs
6.45
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
5528393
Cost of Loan
(Assume
3
% pa on
70
% debt)
282450
Return of Equity
(Pure cash flow return)
8.45
%
Return of Equity with a
5% Capital Growth Rate:
24.87
%
Return of Equity with a
7% Capital Growth Rate:
29.74
%
Return of Equity
10% Capital Growth Rate:
37.03
%
*approximate number

Key Highlights

• Building Area: 5,463m2

• NLA: 1,790m2

• Net Return $921,000 p/a

• 11 tenancies

• Opportunity to subdivide

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