Circa 9% net yield Government Tenant

Discussion in 'Commercial Property' started by Beano, 29th May, 2018.

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  1. Beano

    Beano Well-Known Member

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    Location:
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    17 Prince Street NSW
    Agent Burgess Rawson
    Michael 0403580528
    Kieran Bourke 0417418007
    Auction 11am Tuesday 19 June 181 Elizabeth St Sydney
     
    Beano, 29th May, 2018
    #1
    jefn89, Hung, Harry30 and 1 other person like this.
  2. Chabs

    Chabs Well-Known Member

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    Location:
    Sydney
    I am a fan of corner blocks, good frontage, location etc.. but,

    grafton nsw is a higher risk area than a metro area, also;

    The net rent ex. gst is $231 pm2.. not sure if this reflects market rate, will not be surprised if it is shaved by 30-40% if tenants move on or if there is a market review?

    Is this a risky one?

    The link
    Government & Multinational Tenanted Freehold Investment - Burgess Rawson


    EDIT: Rental period is annually! Hope that the tenant prepays a year in advance
     
    Chabs, 29th May, 2018
    #2
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    :eek:, that's extremely low for a 5.5 star building even in a regional. Sounds like the tenant is on 50% rent.
     
    Scott No Mates, 29th May, 2018
    #3
  4. Alias

    Alias Member

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    When they say "Rental Period: Annually" do they mean that the rent reviews occur annually?

    There would be a lot more you need to look into before investing. Generally high yields correlate with higher risk. I'd say the re-leasing risk is high on this one.
     
    Alias, 30th May, 2018
    #4
  5. jefn89

    jefn89 Well-Known Member

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    Nice post here Beano!
    Keen to hear what it sells for if you're going to stay in the loop let us know?
     
    jefn89, 9th Jun, 2018
    #5
  6. Shady

    Shady Well-Known Member

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    I'd want to find a better place for my $10mil, risk/return just a bit off for my liking.

    Sold in Aug 2015 for $7.5mil
     
    Shady, 13th Jun, 2018
    #6