High Return Brisbane Airport Office Warehouse Unit
- Leased to subsidiary of Global aviation company who has occupied the unit since 2006
- Brand new 4+4 year lease
- Net Income of $70,800 pa (8.64% net yield)
Purchase Details
- Asking Price $850,000 plus
- Purchase Price $820,000
- Deposit (assuming 70% debt) - 30% $246,000
- Other purchasing costs $10,000
- Total Acquisition Costs $256,000
- Net Rental $70,800
- Net Yield on Property 8.64%
Cash-On-Cash Returns
- Deposit Needed = 30% + Costs: $256,000
- Cost of loan (Assume 2.7% pa on 70% debt): $15,498
- Return on Investment (cash on cash): 23.18%
- Return on Investment with a 5% Capital Growth Rate: 39.20%
*approximate representative numbers only
How we helped this client
Our client was a first time commercial property investor who required some help with analysis, negotiation and due diligence of some properties they were considering.
We assisted them with assessment of this leasehold asset (on Brisbane Airport Corporation leasehold land), negotiated the terms of purchase and undertook a thorough due diligence exercise of the tenant and property.
This property is well placed to ride the expected wave of significant growth in Brisbane and particularly the Brisbane Airport precinct over the coming decade, further bolstered by the recent Olympic Games announcement.
