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Purchased

Shopping centre investment!

Our client was looking for a high-yielding shopping centre. While this purchase took six months to complete, this large asset was one of the highest-yielding ones we could find in the metro capital city location. Sitting on 14,459m2 of prime land, this fully leased, modern mixed-use, commercial and retail centre was secured 100% off-market.

Initially, we were only going to purchase two of the buildings in this asset, but that later spread over to acquiring the third building. This additional purchase brought the total tenant count from 13 to 23 tenants and over $1.4 million in income per annum.

‍

Purchase Details

Asking Price

21000000

Purchase Price

19500000

Deposit (assuming

65

% debt)

6825000

Stamp Duty

999618

Building Report*

3900

Solicitor Cost*

18000

Valuation*

11000

Other Fees* (Depreciation
report, bank fees)

Total Cash Required

7857518

Purchase Price + Purchasing Cost

20532518

Net Annual Cash Flow Return

1424570

Net Yield on Property

7.31

%

Net Yield Accounting for
Purchasing Costs

6.94

%

Cash-OnCash Returns

Deposit Needed =

% + Costs

7857518

Cost of Loan

(Assume

5

% pa on

65

% debt)

633750

Return of Equity

(Pure cash flow return)

10.06

%

Return of Equity with a

5% Capital Growth Rate:

22.47

%

Return of Equity with a

7% Capital Growth Rate:

27.44

%

Return of Equity

10% Capital Growth Rate:

34.88

%

*approximate number

Key Highlights

• Building Area: 14,459m2

• NLA: 14,459m2

• $1,424,570 net income

• Significant land holding of 14,459m2

• High exposure with 22,000 vehicles per day

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