High Return Ipswich CBD Office Asset
- Leased to QLD State Government since 2004
- Purpose built building with strong prospects for continued long term occupation
- 25 Car Parks (10 in secure lock up)
- Net Income $285,000 pa (9.34% net yield)
- Practical / flexible layout that could be split into two tenancies should the building become vacant in future
Purchase Details
- Asking Price $3,400,000 plus
- Purchase Price $3,050,000
- Deposit (assuming 65% debt) - 35% $1,067,500
- Stamp Duty $103,700
- Other purchasing costs $9150
- Total Acquisition Costs $1,180,350
- Net Rental $285,000
- Net Yield on Property 9.34%
Cash-On-Cash Returns
- Deposit Needed = 35% + Costs: $1,180,350
- Cost of loan (2.48% pa on 65% debt): $49,166
- Return on Investment (cash on cash): 20.50%
- Return on Investment with a 5% Capital Growth Rate: 33.42%
*approximate numbers
How we helped this client
Our client was seeking two diverse commercial assets.
We found this property on market and were attracted by the long term occupation of the tenant (since 2004). Being a lease to the Qld State Government, leases are generally no longer than 3 years however with careful consideration of the purpose built facility and discussions with the tenant gave our client a good degree of confidence that they will continue to occupy for the longer term.
With an almost unheard net return in the current market, coupled with a strong location in the Ipswich CBD that we believe will continue to prosper in the longer term, we believe this was a strong buy on great terms for our client.
As a second asset for this client we purchased an industrial property to offer diversification.
