Our client, a family office, wanted genuinely passive income. No management headaches, no vacancy risk. We sourced this off-market in a tightly held pocket of Newcastle. The tenant is Motorserve, part of Insurance Australia Group, and they have occupied the site for 19 years.
• Lease 5 + 5 years to 2035, with 3% annual increases
• Net income $266,440 a year
• Tenant pays 100% of outgoings, including land tax and management
• 892m² plus 21 car spaces
We negotiated $344,000 off the asking price and secured up to $200,000 in vendor-funded rectification works. Up to $544,000 in value delivered.
Strong income. Strong covenant. Strong upside.
Our client is an astute investor who engaged us to source an Industrial “set and forget” tenanted investment property located in south east Queensland. Ideally with a long lease to a reputable tenant and a 5.5%+ net yield. His main goal was to have a low-maintenance investment providing a long-term secure income stream.
Sourced off-market, this large warehouse is currently leased to World Gym, on a 10y lease with options until 2042. Whilst delivering a 5.5% increasing to 5.65% in September, this asset has also a 10% rent uplift.The cherry on top? This impressive 920m2 Industrial warehouse has been purchased for only $3,043m2, and it can be split into 3 warehouse units. With similar units selling between $3,500-$4,000/m2, it represents a 15-30% capital value uplift - this is what it means to buy value.
