Large private investor purchase - Western Syd

Source - Aus Financial Review.

A private investor has paid $A12.75m for a 10,908sq m office-warehouse in theSydney suburb of Wetherill Park. The property had been owned by the failedStateland Developments, and auctioned on behalf of a Colonial mortgage fund. Arecent survey by National Australia Bank found that capital growth in theindustrial property sector is expected to average 1.2 per cent in the next 12months.

Holy ***** thats a large purchase by a private investor, wonder if thats a one person show.

Regards,

RH
 
Looks like you have found it.

sold on approx 10% Nett return, single tenant, 7yrs remaining on lease + 2x 5yr options, fixed 3% P.A Increases.
 
43 NEWTON RD, WETHERILL PARK, NSW, 2164 - - -
Sold For:
$7,400,000 Sold on:
09/06/2006 Sale Type:
Normal Sale Property Type:
VACANT LAND Land Size:
20,590m2

How much does it cost to build a shed?
 
The amount for a "private investor"s actually quite reasonable.

A lot of these type of investors are actually trusts and there is still a lot of cash in the sidelines waiting to come back in.

I have busy lately undertaking due diligence on assets substantially bigger and there seems no end to it in the near future.

What GFC!
 
How much does it cost to build a shed?


Office Area of ~ 1,000sqm @ $ 1,500 / sqm = 1.5m

Warehouse Area of ~ 10,000sqm @ $ 600 / sqm = 6m


Land cost 7.4m, with 20,590 sqm = $ 360 / sqm


Total empty shell = 7.4 + 1.5 + 6 = 14m


Give nothing for building risk.
Give nothing for holding costs.
Give nothing for finding a Tenant and signing them up.


The developer took a bath by the looks of it.


The Buyer got a screaming bargain and did nothing. Nice one. A prime example of why I don't play the developing game.
 
development can be lucrative, Dazz.

just need to remember things like CGT, GST, headworks, finishing etc.

so many people are so "gun-ho" with their large wad of cash, forgetting that you sometimes just can't chuck money at a problem and make it go away.

i've seen so many deals fall over where people have said "house+land sale (minus) purchase cost (minus) small contingency = profit". it just doesn't work like that.
 
Agreed Aaron - no doubt someone is making good money from developing, otherwise I assume they wouldn't be doing it ?? I assume that's a valid assumption.


I cannot make the numbers work, and aren't interested in banging heads with builders and tradies - too much personality and not enough moolah for me.


....and I have no interest in jumping through the never ending hoops placed in front of me by council and especially development funding Banks. Your presentation last night was a prime example of that. They make my normal argy-bargy with the Bank look like play school. 100% unconditional pre-commitments before starting....yep - good one - next !!
 
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