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Purchased
Entire shopping complex!
This is our valued client’s first purchase with Rethink Investing. We had to exit out of an industrial property purchase contract that was unconditional before this purchase. Our due-diligence team found an issue with that asset. However, this one was a great and clean deal. We found some discrepancies in the income, resulting in a $70,000 discount on the price. Our client is now unconditional on this one of a kind asset.
Purchase Details
Asking Price
5500000
Purchase Price
5180000
Deposit (assuming
70
% debt)
1554000
Stamp Duty
297269
Building Report*
900
Solicitor Cost*
9500
Valuation*
4000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
5500000
Total Cash Required
1865669
Purchase Price + Purchasing Cost
5491669
Net Annual Cash Flow Return
315990
Net Yield on Property
6.1
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.75
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1865669
Cost of Loan
(Assume
3
% pa on
70
% debt)
108780
Return of Equity
(Pure cash flow return)
11.11
%
Return of Equity with a
5% Capital Growth Rate:
24.99
%
Return of Equity with a
7% Capital Growth Rate:
30.54
%
Return of Equity
10% Capital Growth Rate:
38.87
%
*approximate number
Key Highlights
• Building Area: 419m2
• NLA: 2,597m2
• Abundant onsite parking (approx. 27 bays)
• Generous depreciation scheme
• Anchored by established long term national tenant: NightOwl – on a 7 year lease with two five year options
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
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