Client gets the 9.2% yielding property they want
May 9, 2013/
We recently had a brief from a client to source a property with a value up to $1.5m and a 9% + yield.
Jan 2013 our client went unconditional on the following:
- Purchase price $1.450m
- Rent $136k per annum
- Yield 9.38%
- Lease: 4 months in to a 4 year lease with 2 x 4 year right of renewals
- Strong tenant – 3rd generation business
- Property type – clear span warehouse with office space. No earthquake concerns.
Follow up from our client 6 months later…
“The property is running well – the first annual reports and GST return were completed last month and it is running at a profit. The tenant has been excellent so we are very happy with it so far.”