8.56% net Return! Our Client’s Fifth Purchase with Rethink Investing

Rethink Investing helped our client secure this investment off-market. This freehold asset spans 7,083 sqm across five titles, zoned for ‘Medium Impact Industry.’ It features a total net lettable area of 2,205 sqm across four buildings, including office space and warehousing equipped with two 3-tonne gantry cranes and 3-phase power. Secured by a long-standing tenant, a multi-national tenant, which has been on-site for nearly 20 years, this property promises strong yields and offers significant depreciation benefits.

Purchase Details

Asking Price

2500000

Purchase Price

2350000

Deposit (assuming

% debt)

822500

Stamp Duty

109885.8

Building Report*

1800

Solicitor Cost*

8500

Valuation*

4500

Other Fees* (Depreciation
report, bank fees)

35570

Total Cash Required

982755.8

Purchase Price + Purchasing Cost

2477755.8

Net Annual Cash Flow Return

196950

Net Yield on Property

8.56

Net Yield Accounting for
Purchasing Costs

7.95

Cash-OnCash Returns

Deposit Needed =

% + Costs

982755.8

Cost of Loan

(Assume

6.25

% pa on

% debt)

95937.5

Return of Equity

(Pure cash flow return)

10.53

Return of Equity with a

5% Capital Growth Rate:

22.23

Return of Equity with a

7% Capital Growth Rate:

26.92

Return of Equity

10% Capital Growth Rate:

33.94

*approximate number

Key Highlights

Allotment over 5 titles zoned ‘Medium Impact Industry’
Warehousing over 4 buildings featuring 2×3 Tonne gantry cranes & 3 phase power
Functional office featuring reception, individual offices, boardroom, lunchroom & amenities with air-conditioning throughout
Proximity to quality national & local businesses Black Toyota, Riverina Stockfeeds & Oakey Beef Exports
New Storage Shed Constructed in 2023 with Front and Rear Roller Doors
5+5 year lease at $196,950pa after all outgoings