Industrial and activity centre, metro Melbourne · 2025
A $20m deal, funded by the client's own bank.
A $20,000,000 industrial and activity centre, bought more than 50% under-rented. The client kept their existing banking relationship; Nick and his team consulted on the transaction and built the finance documents that funded it.
The situation
An industrial property and activity centre with multiple tenants in metro Melbourne, purchased in 2025 for $20,000,000: a 28,000 sqm site with 10,046 sqm of buildings, only 34% site coverage. At this size the credit paper has to be institutional-grade.
The client wanted to keep their existing bank. So Nick and his team consulted on the transaction and prepared the finance documents, and the client's own banker funded the deal.
What we did
The file made the under-rent story, the reversion path and the serviceability unarguable:
- Client capital in of roughly $7,511,000 (deposit plus costs), around 65% leverage arranged through the client's own banker
- Passing rent of $1,026,809 net a year set against market rent of $2,175,000 net: bought more than 50% under-rented
- A 5% net yield on the purchase evidenced, reverting to a projected 10.8% or more on cost
- Development upside on the unused land documented and held in reserve
The outcome
The client's bank funded it on the strength of the documents. On the projections the valuation reaches $35,000,000 or more and the net profit is a projected $13,600,000, a projected 181% ROI within five years, with the development upside still untouched.
A real matter, published with the client's consent. Identifying details are withheld and no third party is named. Figures are the client's own; every projection is labelled and is an estimate only. Past outcomes do not indicate future results, and any transaction depends on individual circumstances and lender criteria.
The servicing verdict, as the worksheet showed it
Purchase price
$20m
Leverage (own bank)
~65%
Passing vs market rent
$1.03m / $2.18m
What the client got
Projected valuation
$35m+
Projected net profit
$13.6m
Projected 5-year ROI
181%
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