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Multi-tenant investment

We secured this great investment off-market for our client. The property is located on a highly visible and exposed corner. There was upside in the deal as well as a very high yield from day one This is our clients first purchase with Rethink Investing. They were looking for a multi-tenant investment with some upside.

This deal matched their requirements as there are two vacancies we could fill in this asset to send the yield north of 7.5% net. We managed to extend a lease and fill a vacancy in the due-diligence period. This has no doubt created instant equity before the asset even settled. We are now on the hunt for property number two for them.

Purchase Details
Asking Price
3500000
Purchase Price
3050000
Deposit (assuming
70
% debt)
915000
Stamp Duty
149153
Building Report*
900
Solicitor Cost*
7000
Valuation*
3500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
3500000
Total Cash Required
1075553
Purchase Price + Purchasing Cost
3210553
Net Annual Cash Flow Return
212000
Net Yield on Property
6.95
%
Net Yield Accounting for
Purchasing Costs
6.6
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1075553
Cost of Loan
(Assume
3
% pa on
70
% debt)
64050
Return of Equity
(Pure cash flow return)
11.77
%
Return of Equity with a
5% Capital Growth Rate:
25.95
%
Return of Equity with a
7% Capital Growth Rate:
31.62
%
Return of Equity
10% Capital Growth Rate:
40.13
%
*approximate number

Key Highlights

• Building Area: 1013m2

• NLA: 2,016m2

• Main road exposure

• High quality dependable tenants

• 6 separate incomes on the asset

Get in touch

If you’re interested in joining the lucrative world of commercial property, contact us now.

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