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Retail and Childcare Complex: 4th Acquisition for Client

Rethink Investing is thrilled to have facilitated the acquisition of this high-performing retail and childcare complex for a valued client—marking their fourth purchase through our agency. Located in a sought-after Brisbane suburb, this asset offers both strong financial performance and future development potential.

We assisted the client with detailed due diligence, overcoming minor challenges in calculating the true net return. The result was a seamless transaction that delivered exceptional value. The property boasts a nearly 7% net return—an impressive figure in today’s highly competitive commercial market.

Adding to its appeal, this complex presents subdivision opportunities, further enhancing its long-term investment potential.

Purchase Details
Asking Price
14900000
Purchase Price
13450000
Deposit (assuming
70
% debt)
4035000
Stamp Duty
803393
Building Report*
1500
Solicitor Cost*
12500
Valuation*
6500
Other Fees* (Depreciation
report, bank fees)
Total Cash Required
4858893
Purchase Price + Purchasing Cost
14273893
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
4858893
Cost of Loan
(Assume
4
% pa on
70
% debt)
376600
Return of Equity
(Pure cash flow return)
10.24
%
Return of Equity with a
5% Capital Growth Rate:
24.08
%
Return of Equity with a
7% Capital Growth Rate:
29.61
%
Return of Equity
10% Capital Growth Rate:
37.92
%
*approximate number

Key Highlights

• Building Area: 1,790m2

• NLA: 5,463m2

• Net return: $921,000pa

• Opportunity to subdivide

• 11 tenancies

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