Caringbah
Large commercial space with defects throughout which was purchased for $1,600 per sqm. Transaction was done and leased to a medical company before the property exchanged.
- Purchase price
- $2.6M
- Valuation uplift
- $8M+
- Gross yield
- 20%
- Income
- $500,000 p/a
A private client transitioning from residential to commercial wanted contracted income with minimal management. The priority was tenant covenant quality and review certainty, not headline yield.
- 01
Client Specific
Our client wanted a medical specific property to possibly lease to a company that was part owned by our client.
- 02
Leased before Exchanged
Verbal terms to lease the premises for $500,000 prior to the property exchanging.
- 03
Versatility
With the ability to create multiple tenancies it was a space we knew we could gain huge success with.
- Building area
- 1500sqm
- Tenancies
- 2
- Type
- Medical
- Reviews
- 3%+GST
- Lease expiry
- 5 x 5 + Options
- Independent valuation
- $10M+
- Step 1Transition plan from a two-property residential base into a single commercial asset.
- Step 2National search across three states, filtered on covenant and review structure.
- Step 3Lease, outgoings and make-good provisions reviewed line by line with the client's solicitor.
- Step 4Acquired at a 7.2% passing yield, 40bp above the prevailing market cap rate.
Income contracted to 2033 with fixed escalation; asset revalued at $3.55M at the first annual review.