Industrial Warehouse $361,000 below asking price of $2.35m. 8.5% Net Yield.
Highlights*
- Off Market Purchase
- $361,000 below asking price
- 8.5% Net Yield
- YLong Term Tenant
- International Covenant
- Free Standing Facility
- High Growth Corridor
How the deal happened:
Having engaged Providence to buy their first commercial property back in 2015, the client once again sought the professional buying services of Providence Proeprty Group.
Seeking a 6% Net yield investment with a secure long term lease and tenant, Providence was able to locate and negotiate a suburb industrial warehouse leased by an international tenant. Seeking $2.35m, Providence was able to secure the property for $1,989,000 at a discount of $361,000 generating a net yield of 8.5%
The tenant is on a 7 year lease with 2,5 years remaing and a further 1×3 year option. The tenant is part of an international group supplying specialised technical products, technical services and value-add services to mining and industrial manufacturing industries and is not impacted financially by COVID 19.
Property highlights:
- This standout facility is a well designed modern construction, predominantly tilt panel and Daddo with well appointed office space to present corporate appeal for its user.
- The internal height sits between 7-8m allowing for versatile racking and storage layouts, with two electric roller doors and fully insulated roofing. The office has both male and female amenities with shower facilities for warehouse and office staff.
- Specifications of site:
— Warehouse: 1,029m2
— Showroom/office: 231m2
— Land area: 2,453m2
*Calculations based on the following assumptions:
- Purchase Price $1.989,000
- Site Area* 2,453m2
- GLA* 1,260m2
- Net Income* $160,922 net
- Net Yield 8.5%
- Tenant: Domestic with International Covenant
- Lease Term: 7 years
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