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Purchased
Well-positioned industrial asset with dual leases
This industrial asset was recently acquired on behalf of one of our valued clients. The property is well-positioned in Brisbane’s inner-north with dual tenant leases; complementary businesses for stone, tiling, construction and interior design. Our client was after an off-market industrial asset within the competitive Brisbane market.
We looked over a number of assets before landing this large freehold dual-tenanted investment. We expect some rapid capital growth as the market tightens under increasing demand and limited supply.
Purchase Details
Asking Price
9480000
Purchase Price
5480000
Deposit (assuming
70
% debt)
1644000
Stamp Duty
308450
Building Report*
1000
Solicitor Cost*
5500
Valuation*
3500
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
1962450
Purchase Price + Purchasing Cost
5798450
Net Annual Cash Flow Return
334000
Net Yield on Property
6.09
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.76
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1962450
Cost of Loan
(Assume
3
% pa on
70
% debt)
95900
Return of Equity
(Pure cash flow return)
12.13
%
Return of Equity with a
5% Capital Growth Rate:
26.09
%
Return of Equity with a
7% Capital Growth Rate:
31.68
%
Return of Equity
10% Capital Growth Rate:
40.06
%
*approximate number
Key Highlights
• Building Area: 6,070m2
• NLA: 2,290m2
• Net Return $334,000 p/a
• 36% site coverage in Brisbane LGA
• 2 tenancies
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