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Purchased

New Zealand commercial property! This Auckland industrial asset was recently settled by the Rethink Investing NZ team.

Newly refurbished warehouse on 971sqm of freehold land and strategically located just 13 kilometres from Auckland’s CBD with excellent accessibility to motorways and public transport. The property boasts an above market yield for tightly held Auckland industrial assets and has a new 5-year lease.

Rethink Investing’s expert team is on the ground in New Zealand, working closely with a strong network of industry leaders to secure off-market assets like this. In the current market, taking a localised approach is essential for securing high-quality deals and delivering exceptional opportunities for our clients.

Purchase Details

Asking Price

2700000

Purchase Price

2590000

Deposit (assuming

% debt)

1036000

Stamp Duty

Building Report*

1500

Solicitor Cost*

9000

Valuation*

3500

Other Fees* (Depreciation
report, bank fees)

54131

Total Cash Required

1104131

Purchase Price + Purchasing Cost

2658131

Net Annual Cash Flow Return

170000

Net Yield on Property

6.56

Net Yield Accounting for
Purchasing Costs

6.4

Cash-OnCash Returns

Deposit Needed =

% + Costs

1104131

Cost of Loan

(Assume

% pa on

% debt)

124320

Return of Equity

(Pure cash flow return)

4.14

Return of Equity with a

5% Capital Growth Rate:

15.87

Return of Equity with a

7% Capital Growth Rate:

20.56

Return of Equity

10% Capital Growth Rate:

27.59

*approximate number

Key Highlights

* Strong existing demand by both local and national tenants for this prime location

* Excellent development potential, with the zoning supportive of a great variety of uses, further supported by being part of a major growth corridor of Hobart.

* Tenant pays all outgoings. This includes recoverability of property management from the anchor tenant, representing immediate upside

* Large land holding under pinning long term capital growth

* Future capital growth upside potential by adjusting rent to market

* Great discount secured off market, providing an excellent return relative to an asset with such strong upside potential