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Purchased

Modern retail centre

We helped our client secure and complete all the due diligence on this modern retail centre. The asset incorporates three (3) national and chain brand tenancies including Supercheap Auto, Prices Plus and Domino’s Pizza plus an Amazon storage locker. The centre features a strong lease expiry profile (WALE) of over 5 years by income with all tenants secured on net leases. This is our valued client’s first purchase with Rethink Investing.

They are successful businessmen who are looking to set up a passive income independent of their business. Their requirements were to target low-risk and high-quality commercial properties that would produce strong rental growth over time. This asset ticked all the boxes.

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Purchase Details

Asking Price

9500000

Purchase Price

9000000

Deposit (assuming

70

% debt)

2700000

Stamp Duty

531053

Building Report*

1000

Solicitor Cost*

9500

Valuation*

4500

Other Fees* (Depreciation
report, bank fees)

Total Cash Required

3246053

Purchase Price + Purchasing Cost

9546053

Net Annual Cash Flow Return

497160

Net Yield on Property

5.52

%

Net Yield Accounting for
Purchasing Costs

5.21

%

Cash-OnCash Returns

Deposit Needed =

% + Costs

3246053

Cost of Loan

(Assume

3

% pa on

70

% debt)

227223.72

Return of Equity

(Pure cash flow return)

9.49

%

Return of Equity with a

5% Capital Growth Rate:

23.36

%

Return of Equity with a

7% Capital Growth Rate:

28.9

%

Return of Equity

10% Capital Growth Rate:

37.22

%

*approximate number

Key Highlights

• Building Area: 1,545m2

• NLA: 5,914m2

• 100% leased investment, all being national and chain traders – Supercheap Auto (300+ stores); Prices Plus (30+ stores) Domino’s (860+ stores)

• Very strong rental growth build into leases (CPI+1.5% annually)

• Strong lease profile (WALE) – The centre features a WALE of 5.1^ years by income

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Last Name *

Email *

Phone *

State you are based in *

I am looking for assistance with *

Are you interested in Residential or Commercial Property Investment? *

What is your estimated deposit? (AUD) *

What is your estimated total property budget? (AUD) *

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Do you have a 3+ years lease in place?

Yes

No

Does the tenant operate business between 6:00am to 6:00pm?

Yes

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Can you provide at least one power bill issued within the preceding 3-months?

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