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Purchased

Medical centre with a long lease

Rethink Investing's acquisition team recently secured this commercial property off-market for our valued client. The asset was a strong-performing medical centre with a rare 10+10 year lease.

This is our clients' first property with Rethink Investing. They were looking for a property that would perform in all economic conditions. Our clients wanted a newer building, so they didn't have to plan for any major maintenance works in the near future. They also liked purchasing this off-market without competing with others in an auction-style environment.

‍

Purchase Details
Asking Price
3600000
Purchase Price
3194932
Deposit (assuming
70
% debt)
958479.6
Stamp Duty
156662.19
Building Report*
1000
Solicitor Cost*
8500
Valuation*
4000
Other Fees* (Depreciation
report, bank fees)
Total Cash Required
112841.79
Purchase Price + Purchasing Cost
191695.92
Net Annual Cash Flow Return
427084
Net Yield on Property
6
%
Net Yield Accounting for
Purchasing Costs
5.7
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1128641.79
Cost of Loan
(Assume
5.25
% pa on
70
% debt)
117413.75
Return of Equity
(Pure cash flow return)
6.58
%
Return of Equity with a
5% Capital Growth Rate:
20.74
%
Return of Equity with a
7% Capital Growth Rate:
26.4
%
Return of Equity
10% Capital Growth Rate:
32.2
%
*approximate number

Key Highlights

• Building Area: 505m2

• NLA: 1,102m2• Current net rent: $191,695.92 per annum net + GST

• Lease term: 10 year + 10 year option

• Depreciation: over $52,000 in depreciation benefits this year!

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