COMMERCIAL PROPERTY INVESTOR CASE STUDY – Child Care
PRICE
$4,537,134
PROPERTY
Coolibah Drive, GREENWOOD
ACCOMPLISHMENT
Structured a deal to develop a commercial property for our investor client at a significantly better yield than market and minimised risk through innovative due diligence.
IN THE CLIENT’S OWN WORDS
“They used innovative and resourceful techniques to structure our purchase of (…) Greenwood to achieve significantly higher returns than the market…
“We were also delighted with the extensive due diligence conducted. They developed their own methodology for the evaluation for our complex transaction and this gave us the comfort that our interests in the transaction were being optimally protected.
“It is our intention to retain them for all of the further projects which we have thus far identified.”
– Client, Perth
THE CHALLENGE
Our client was establishing a portfolio of commercial properties a prime objective being security and a strong yield.
THE WIZARDS SOLUTION
We employed three significant approaches to help our client achieve their objectives:
- We developed new relationships with a national ASX-listed target tenant and developer, which allowed us to structure a deal with a blue-chip tenant and significant savings.
- We helped our client purchase a property where they paid for the land, construction, and developer’s profit separately, which saved money on transfer duty, interest, and developer’s risk fee.
- We negotiated a price reduction with the developer.
- We helped structure the purchase so that it was allowed to proceed without incurring foreign buyer’s duty.
- Our approach resulted in a secure, low-risk lease with the high-quality ASX-listed tenant, and significant savings, leading to a stronger yield than the industry standard.
Our approach resulted in a secure, low-risk lease with the high-quality ASX-listed tenant, and significant savings, leading to a stronger yield than the industry standard.
COMPLEX DUE DILIGENCE
As there was no buyer’s agent precedent for due diligence or special conditions for a similar complex commercial purchase, we had to develop a new template comprising 52 non-standard checks and conditions to ensure our client was protected on all fronts. For example:
- We conducted checks on the builder, developer, and tenant.
- We also considered allowable future land uses if the tenant leaves.
- We confirmed the developer’s responsibility for tenant requirements with no buyer risk.
- We confirmed developer personal guarantees until rent commences.
- We ensured the developer would pay rent if completion was late.
Our rigorous due diligence process gave our client peace of mind and provided us with a template for future complex commercial purchases.
WHY THE WIZARDS WAY WORKED
Our approach involved developing new relationships, creating innovative structures that benefited all parties, and devising thorough due diligence to protect our client’s interests.
Our client was delighted with our resourceful techniques and extensive due diligence. They felt their interests were well-protected and intend to retain our services for their future projects.
At Property Wizards, we pride ourselves on delivering outstanding results for our clients and have successfully acquired more than half a billion dollars’ worth of Perth properties. Our 19+ years of experience, personalised approach and recognition for excellence by the peak industry bodies sets us apart as Perth’s premier buyer’s agent. If you’re looking to purchase a premium home or investment property in Perth, we’d be happy to help you achieve your goals.
GETTING STARTED
If you want to learn more about property investment strategies, or you’d like to clarify your investment strategy and goals, why not complete our Getting Started form to get the ball rolling.
Property Wizards believes everyone has the right to the knowledge to help you accumulate wealth, no matter your background, education or income.
We can help you unlock the potential of the real estate market for your family through savvy property selection, negotiation on price and conditions, development expertise and the magic of robust research.
Regardless of market conditions, our research, local knowledge, and access to silent sales means we find the hidden gems that can outperform the market in capital growth and rental returns for long term wealth creation.
Importantly, we’re able to provide property investors and homebuyers with the same level of representation that property sellers have benefited from for years.
Your property portfolio is your path to financial freedom and the lifestyle you’ve been longing for.
Property Wizards takes away the stress of buying a property and saves you money at the same time. We can show you how, or you can sit back and let us do all the hard work for you.
