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Purchased
High-yielding industrial asset with dual tenancy and international tenants
This is our clients third purchase through Rethink Investing. This industrial asset was the perfect addition to their portfolio, as industrial was the one asset class they don't already own. This site has a great dual tenancy offering with two buildings on the one lot. There is a great value add opportunity to strata title the lot, giving the buyer the ability to sell individually. The tenants in place operate internationally and are renowned names in the construction industry.
Purchase Details
Asking Price
3000000
Purchase Price
2800000
Deposit (assuming
70
% debt)
840000
Stamp Duty
151613
Building Report*
800
Solicitor Cost*
5500
Valuation*
2000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
3000000
Total Cash Required
999913
Purchase Price + Purchasing Cost
2959913
Net Annual Cash Flow Return
200118
Net Yield on Property
7.15
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.76
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
999913
Cost of Loan
(Assume
3
% pa on
70
% debt)
58800
Return of Equity
(Pure cash flow return)
14.13
%
Return of Equity with a
5% Capital Growth Rate:
28.13
%
Return of Equity with a
7% Capital Growth Rate:
33.73
%
Return of Equity
10% Capital Growth Rate:
42.14
%
*approximate number
Key Highlights
• Building Area: 1825m2
• Land Area: 3907m2
• Annual Net Rental: $200,118 p/a
• Concrete tilt panel construction
• 2x buildings
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