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Purchased

We are proud to share another successfully secured freehold office asset in Queensland on behalf of our client.

This commercial property presents a rare opportunity for substantial rental growth, as it is currently under-rented by 30-40%. This significant upside positions our client to capitalise on future value increases.

The long-standing tenant, the State of Queensland’s Department of Youth Justice, has occupied the premises for over 20 years, with a new 4-year lease extending to 2027, ensuring a stable and reliable income stream.

Purchase Details

Asking Price

2000000

Purchase Price

1780000

Deposit (assuming

% debt)

623000

Stamp Duty

82875

Building Report*

1500

Solicitor Cost*

6000

Valuation*

3000

Other Fees* (Depreciation
report, bank fees)

35600

Total Cash Required

751975

Purchase Price + Purchasing Cost

1908975

Net Annual Cash Flow Return

120181

Net Yield on Property

6.75

Net Yield Accounting for
Purchasing Costs

6.3

Cash-OnCash Returns

Deposit Needed =

% + Costs

751975

Cost of Loan

(Assume

6.25

% pa on

% debt)

72312.5

Return of Equity

(Pure cash flow return)

6.37

Return of Equity with a

5% Capital Growth Rate:

21.45

Return of Equity with a

7% Capital Growth Rate:

26.19

Return of Equity

10% Capital Growth Rate:

33.29

*approximate number

Key Highlights

• Net Leasable Area: 750 sqm on a 3,237 sqm block

• Current Net Income: $120,181 p.a

• Under-rented by 30-40%

• Low site coverage: Only 23% developed, offering scope for future expansion

• Leased to a Government tenant with a 20+ year occupancy and renewed lease until 2027

• Prime location opposite a major shopping centre

• Recent property upgrades, including new floor coverings (2024) and air conditioning (2021)

• Parking for 44 vehicles

This acquisition represents a rare chance to secure a high-potential, under-rented asset in one of the city’s most active commercial precincts. The opportunity for rental uplift, combined with the security of a government tenant, ensures this is a strong investment for long-term value growth.

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