- Regional acquisition in WA.
- Purchased in 2020 for $1.25M, just after COVID lockdowns in Australia.
- Property had been briefly sold in mid-2019 to an international buyer but was on a long due diligence period as part of a wider portfolio acquisition.
- That sale fell through and frequent conversations with the agent allowed us to present an offer for 1.25M prior to the property re-listing.
- Sold with 5 years remaining on a 6 year lease, at 132k net rent - 10.5% yield.
- Tenant is a strong national equipment hire company.
- First year free cash flow was ~ 105k p.a. based on 70% LVR and 3% interest rate at the time, or a return on cash invested of ~ 24% p.a.
