Purpose of Purchase: Corporate Investor
Property Type: Commercial Premises
- Security of income for the organisation.
- Capital growth in the future.
- No tenants being fast food or industries that are contrary to medical practice.
- Business park for 13 small businesses on a large 3,166sqm corner allotment
- Fronts the connection road that will link in the new Toowoomba Bypass Rd which is due for completion in December 2018.
- WALE 1.96
A Successful Investment:
When we suggested the property to the Client, we suggested changes to 7 of the 13 leases to either have the tenants execute
options earlier, sign up on longer term contracts or add in additional options to the existing leases. After 2 months of negotiations
we secured the property for $100,000 below and independent valuation that was conducted for the client that did not allow for the
extended leases. The contract was subject to our lease modifications.
During the following 3 months we managed to secure all the lease changes required and extended the security of income of
almost 13 years for the client, taking the average lease expiry from 0.99 years to 1.96 years across the 13 leases in the complex.
In addition to this, we had written into the leases an additional 16 years worth of options which provides potential further added
security of income.
The property is within 500m of the centre of Toowoomba and fronts the new connection road that will link in the Toowoomba
Bypass project to the CBD which will increase future exposure and improve the value of the property.
Finally, we negotiated the property to provide a NET income (after all costs including land tax and management fees) of 9.03%
which is an extremely high return for a quality investment.
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