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Purchased
Established and successful recession proof KFC? investment
This is our clients second purchase through Rethink Investing. This recession proof asset was the perfect addition to their portfolio, which included residential and industrial assets. At a 5.4% net return, this was a particularly good purchase considering the type of tenant. KFC’s are rarely sold at yields this high anymore.
Purchase Details
Asking Price
0
Purchase Price
3705000
Deposit (assuming
70
% debt)
1111500
Stamp Duty
197000
Building Report*
700
Solicitor Cost*
5000
Valuation*
3000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
0
Total Cash Required
1317200
Purchase Price + Purchasing Cost
3910700
Net Annual Cash Flow Return
199000
Net Yield on Property
5.37
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.09
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1317200
Cost of Loan
(Assume
3
% pa on
70
% debt)
77805
Return of Equity
(Pure cash flow return)
9.2
%
Return of Equity with a
5% Capital Growth Rate:
23.26
%
Return of Equity with a
7% Capital Growth Rate:
28.89
%
Return of Equity
10% Capital Growth Rate:
37.33
%
*approximate number
Key Highlights
• Land Area: 1718m2
• Annual Net Rental: $199,000
• 5+5+5 year lease
• 1718m2 of freehold industrial land
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