Margaret River - South West Gem

Case Study

Acquisition Details

  • Purchase November 2022.
  • We helped a high net worth client purchase this prime asset on the main street of Margaret River in the beautiful south west of WA.
  • The properties comprises three retail tenancies on the ground floor and 6 small offices on the top floor anchored by Pharmacy 777.
  • Original asking price of $4.5M - we negotiated the price down to $3.95M
  • The property was self managed by the owners requiring significant work in the due diligence period to understand leases, outgoings and net income.
  • Settlement was then conditional on receiving deeds of variation to correct key lease terms with several tenants.
  • Final net rent of $265k p.a. equating to a passing yield of 6.72%.
  • Strong rental growth expected given most leases have CPI market reviews, with a yield of +7% expected within 12 months, which is top of the range for Margaret River.

Purchase Details

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