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Purchased
Quality industrial asset just north of Brisbane!
This was our valued clients first purchase through Rethink Investing. They were looking for a 6% net return to an established tenant. They were also targeting industrial as this is where they felt most comfortable. This is a quality industrial investment just north of Brisbane. The tenant has been in business since 1993 and the current lease is 3+3+3 year, resulting in a 6% net return for our client.
Purchase Details
Asking Price
550000
Purchase Price
490000
Deposit (assuming
70
% debt)
147000
Stamp Duty
17116
Building Report*
500
Solicitor Cost*
4500
Valuation*
2000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
550000
Total Cash Required
171116
Purchase Price + Purchasing Cost
514116
Net Annual Cash Flow Return
29500
Net Yield on Property
6.02
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.74
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
171116
Cost of Loan
(Assume
3
% pa on
70
% debt)
8575
Return of Equity
(Pure cash flow return)
12.23
%
Return of Equity with a
5% Capital Growth Rate:
26.55
%
Return of Equity with a
7% Capital Growth Rate:
32.27
%
Return of Equity
10% Capital Growth Rate:
40.86
%
*approximate number
Key Highlights
• NLA: 197m2
• Concrete tilt panel construction
• Container height roller door
• 3+3+3 year lease
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