Raine and Horne Commercial

8 Success Story: 1/9 Postle Street, Coopers Plains Dulux Tenant Covenant Increases Asset Profile Paul Flego 0406 604 767 | paul@RnHcommercial.com.au What were the draw cards to the property for Dulux? Prominent exposure to almost 25,000 cars daily Visibility to Beaudesert Road with an illuminated pylon sign Right in vehicle accessibility to the site Modern tilt panel construction with fantastic internal height Perfect Showroom configuration Excellent staff conditions within the tenancy The property is located close to the high profile corner of Beaudesert Road and Boundary Road in Coopers Plains alongside the new ARB Showroom/Retail centre which has recently undergone a major refurbishment. Dulux had been looking in the immediate location for close to 2 years when the subject property came up for lease during an extensive leasing campaign. The current landlord who purchased unit in an off market transaction in 2017, will require some capital expenditure however is very happy to accommodate these works with a tenant covenant such as Dulux. ASSET PROFILE SUMMARY Original Purchase $1,230,000 in 2017 Building Area 729sqm Previous Rental Return $90,040 net per annum Landlord Capital Expenditure $100,000 approx. Dulux Lease Term 6 years Dulux Commencing Rental $102,000 net per annum Potential Cap Rate 6.00% - 6.50%$ Estimate of Realisation $1,630,000 - $1,700,000 Under the current investment climate and historic low interest rates, we envisage cap rate for a blue chip covenant to be circa 6.00% to 6.50%. Potentially even stronger under a dedicated marketing campaign.