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Purchased
High-yielding multi-tenanted shopping centre
This was our clients first commercial purchase and they were looking for a high yielding multi-tenant investment. We viewed a number of assets together before landing on this shopping centre. It was the highest yielding shopping centre available in Australia at the time. So we were lucky to secure this great investment for our client. Even after the mortgage costs this investment clears over $500,000pa in passive income!
Purchase Details
Asking Price
10000000
Purchase Price
9250000
Deposit (assuming
70
% debt)
2775000
Stamp Duty
469693
Building Report*
1500
Solicitor Cost*
5000
Valuation*
4000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
10000000
Total Cash Required
3255193
Purchase Price + Purchasing Cost
9730193
Net Annual Cash Flow Return
759873
Net Yield on Property
8.21
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
7.81
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
3255193
Cost of Loan
(Assume
3
% pa on
70
% debt)
194250
Return of Equity
(Pure cash flow return)
17.38
%
Return of Equity with a
5% Capital Growth Rate:
31.58
%
Return of Equity with a
7% Capital Growth Rate:
37.27
%
Return of Equity
10% Capital Growth Rate:
45.79
%
*approximate number
Key Highlights
• Building Area: 3152m2
• Land Area: 11,204 sqm corner site
• Net Return $759,873pa
• Corner site with 225 A-grade parking bays
• 10 year lease to IGA anchor tenant expiring 2027
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If you’re interested in joining the lucrative world of commercial property, contact us now.
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