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Purchased

Rethink Investing has successfully secured this prime dual-tenanted retail property for our client in Hobart.

Located on one of the city's busiest thoroughfares, the site features dual street frontage and is situated just 6km from the CBD. With a gross lettable area of approximately 3,878 sqm and ample off-street parking, it presents a significant investment opportunity in a designated high-growth corridor.

What makes this property stand out is that it is significantly under rented. The current net yield is 6.23%, while the market yield sits at 8.58%! This represents an upside of over seven figures!

Rethink Investing used our local contact to secure this off market. You really need a local approach to secure deals of this quality in the current market so if you need help, please do not hesitate to reach out to us direct.

Purchase Details
Asking Price
7200000
Purchase Price
7100000
Deposit (assuming
60
% debt)
2130000
Stamp Duty
315089.85
Building Report*
1500
Solicitor Cost*
7500
Valuation*
5000
Other Costs*
153390
Other Fees* (Depreciation
report, bank fees)
7200000
Total Cash Required
2612479.85
Purchase Price + Purchasing Cost
7582479.85
Net Annual Cash Flow Return
442513
Net Yield on Property
6.23
%
Net Yield Accounting for
Purchasing Costs
5.84
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2612479.85
Cost of Loan
(Assume
6.25
% pa on
60
% debt)
310625
Return of Equity
(Pure cash flow return)
5.05
%
Return of Equity with a
5% Capital Growth Rate:
18.64
%
Return of Equity with a
7% Capital Growth Rate:
24.07
%
Return of Equity
10% Capital Growth Rate:
32.23
%
*approximate number

Key Highlights

  • Strong existing demand by both local and national tenants for this prime location
  • Excellent development potential, with the zoning supportive of a great variety of uses, further supported by being part of a major growth corridor of Hobart.
  • Tenant pays all outgoings. This includes recoverability of property management from the anchor tenant, representing immediate upside
  • Large land holding under pinning long term capital growth
  • Future capital growth upside potential by adjusting rent to market
  • Great discount secured off market, providing an excellent return relative to an asset with such strong upside potential

Get in touch

If you’re interested in joining the lucrative world of commercial property, contact us now.

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