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Purchased
Retail/childcare complex!
This asset was our client’s 4th purchase through our agency. We helped complete the due diligence on a property with minor challenges in working out the true net return. That aside, this was a smooth purchase with a great result for the client. The numbers worked out great, with a nearly 7% net return in a quality Brisbane suburb. Returns like this are very hard to find in this competitive commercial market.
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 Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
14900000
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
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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