- Purchased in March 2023.
- Small but very neat and tidy warehouse purchased in a high demand regional centre.
- Purchase price of $475k.
- Net rent of $47k, with a yield of 9.9%.
- International tenant who has been in place since 2009 and discussions confirm that they have no plans on moving.
- Lease doc loan used with a LVR of 65% at 6.1% interest.
- First year free cash flow of $28k p.a.
Acquisition Details
Purchase Details
Purchase Price
$475,000
Net Rent
$47,000
Net Yield
9.9%
Financing
Borrowing
65%
$308,750
Deposit
35%
$166,250
Acquisition Costs
5%
$23,750
Total Funds Required
$190,000
Free Cash Flow
Net Rent
$47,000
Interest Expense
6.1%
$18,834
Free Cash Flow
$28,166
Return on Cash Invested
14.8%
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