4 small shops SA

[kum yin lau]

Hi, I offered my property to one of the tenants who's currently working on funding.

if anyone's interested in a small strip shopping in suburban Adelaide, please contact me.

1 tenant is vacating in March.

Offering just over 7% net yield. Total net rent approx. 50K p.a.

Asking 650K

Property is on 4 separate titles. I can sell them one by one. It's better for me as I won't have to pay CGT.

KY

 

[jrc]

what are the existing tenancies and current length of leases

 

[kum yin lau]

Hi,
shop 1 : 5 + 5 pizza takeaway. He's the one keen to buy.
shop 2: 5+ 5 with provision tenant can vacate any time. Not likely because the shop is a Chinese takeaway which can always sell to another operator
shop 3: chocolate kitchen. This will be vacant from March, currently in process for new tenant
shop 4: new 5 year lease from January 13. This tenant started in 2003

There's always someone wanting to run a fish & chips shop but it will require council approval for change of use.

I suspect that if I put them on the market, someone who needs a consulting room will buy the whole block.

KY

 

[jbeena81]

need more information

hello
just want to know what is currently size of all shops..
also is all shops are currently rented and what is rent for one shop...

 

[D.T.]

hello
just want to know what is currently size of all shops..
also is all shops are currently rented and what is rent for one shop...

Cant you determine whether they're rented and how much for from the above posts?

 

[kum yin lau]

Hi, offered to the food operators at $175K for shop, roughly 65m2 with shed at back on land about 200m2.

Shop 3 previous tenant repainting & going to be taken over by a new business on 1 + 2 + 2 tenancy. Couple starting an art school because of the primary & secondary school behind the shops.

KY

 

[kum yin lau]

Ah, the rents;

new tenancy on $13000 before GST p.a.

the rest on about $13400 p.a.

 

[Corey Batt]

Suburb and street if possible would be fantastic.

 

[Dazz]

kum,


If you wish to sell the shops, you're going to have to give the punters a lot more info than simply dribbling out little morsels.


Write the whole shebang up professionally and present the type of info that you would like to have before you made a decision to buy.


I gotta say, 7% yield is ambitious on your side, especially when taking into consideration the quality of the Tenants....and hence the income stream.


I reckon if you drop the price down to 550K, making the yield 9%, you might get a few more interested Buyers.

 

[kum yin lau]

Hi, nah.

The price of 650K is closer to 8% net yield. The shops don't look flash but the rental history is strong. There's been little vacancy over the 11 years that I've held them. The turnover is very small. The Chinese takeaway has been in operation for 26 years, the pizza shop close to 20 years and the physio just started his 15 year term. The tenant who departed the shop 3 which is getting a new biz tenant was there for 7 years.

The 2 food outlets are due for a rent review end 2015.

I'll be listing with an agent.

KY

 

[speary]

Any chance you could give us the address so that people can properly analyse it?