Hurstville, NSW
Ground-floor retail holding in a established metro centre, leased to a long-standing local operator.
- Purchase price
- $1.95M
- Valuation uplift
- +$260K
- Gross yield
- 6.8%
- Income
- $132K pa
The brief
An SMSF sought a smaller-lot commercial holding with dependable income in a metro centre with deep owner-occupier and tenant demand.
Why we bought it
- 01
Established trading location
The tenancy sits on a high-footfall strip with consistently low vacancy across the centre.
- 02
Long-standing tenant
The incumbent operator has traded from the site for over a decade, reducing re-leasing risk.
- 03
Right-sized for an SMSF
The lot size and price point suited the fund's balance sheet without concentrating risk in a single large asset.
Asset detail
- Building area
- 165 sqm
- Tenant
- Established retail operator
- Lease term
- 5 years + 1×5
- Reviews
- 4% fixed pa
- Frontage
- Main street
- Independent valuation
- $2.21M
The acquisition
- Step 1Fund's income requirement and risk concentration limits confirmed.
- Step 2Metro strip-retail assets screened on tenant history and vacancy in the centre.
- Step 3Lease and outgoings recovery terms reviewed with the fund's advisers.
- Step 4Acquired at $1.95M on a 6.8% passing yield.
Outcome
Income maintained without interruption since settlement; independently valued at $2.21M at first review.