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Purchased
Brand new industrial asset leased to ASX-listed company
Our client was seeking an investment that required minimal ongoing management and offered great depreciation benefits with strong cash returns, we embarked on a four-month journey from engagement to settlement. The objective was clear – find the perfect “set and forget” asset that could provide maximum returns with the least hassle.
Purchase Details
Asking Price
6200000
Purchase Price
5800000
Deposit (assuming
65
% debt)
2030000
Stamp Duty
256500
Building Report*
1500
Solicitor Cost*
8500
Valuation*
4000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
6200000
Total Cash Required
2300500
Purchase Price + Purchasing Cost
6070500
Net Annual Cash Flow Return
381270
Net Yield on Property
6.57
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.28
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2300500
Cost of Loan
(Assume
6.25
% pa on
65
% debt)
235625
Return of Equity
(Pure cash flow return)
6.33
%
Return of Equity with a
5% Capital Growth Rate:
18.94
%
Return of Equity with a
7% Capital Growth Rate:
23.98
%
Return of Equity
10% Capital Growth Rate:
31.54
%
*approximate number
Key Highlights
• Building Area: 3,738m2
• Land Area: 9,989m2
• Lease specifics: 5+5+5 year lease from 1 July 2022
• Net Leasable Area: 3,738m2
• Annual Net yield: $381,270
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