QLD Bundaberg SDA Fixed 10 +10 year Lease - No Maintenance or Repairs

Hi All

NDISD is selling on a fund through construction basis (build to lease) a purpose built SDA property on circa 1600m2 in High St Walkervale. Near Olsens corner shopping centre and on 2 titles.

$160K a year lease to NDISP Leasing. NDISP is one of Australia's 3 largest SDA providers. NDISP is leasing this direct on a fixed head lease, cpi increases. 90 days rent free period and then monthly in arrears. (NDISP is subleasing to 5 parties at a gross rent of >$250k).

Owner to be responsible for rates and insurance. All maintenance and non structural repairs are NDISP cost.

This is the second of 4 of this type of property we have been engaged to develop for the participants of a care provider in this area. First one is completed and full from day one. Similar property in attachment. 300M2 4 bedroom 3 participant house on one title plus 2 x 1 bed villas on another.

Note that this is on a fund through build to lease model. $320K to settle land, balance of $2m payable in stages of build deposit, slab, frame, practical completion and handover.

 

2.32m, gross income 160k is only 6.9% yield.
I'd be expecting more than that from my $2.3 million.

Godd business for NDISP though

 

Balance of $2m total, as in total is $2m. So 8% net.

And yes it's good for us, but it answers questions for people who say what about the cost of maintenance. What about if it's vacant etc etc.

I wouldn't do it, if take the flow through lease we offer. But we have managed funds starting to buy this stuff at 7% net of flow through income. So it's well priced.

I'd also just organise us to build one at cost but again we have people with a lot of what ifs. So it suits them.

 

Written offer received and accepted..