CBD retail, Brisbane · 2025
The bank said no. The asset shows a projected 55% IRR.
A freehold multi-tenant CBD retail centre, previously knocked back, structured so the client could buy a multi-million-dollar asset without touching the balance sheet of the business that funds their life.
The situation
A freehold multi-tenant retail centre in the Brisbane CBD, purchased in 2025 for $6,000,000 by private treaty. It had been to other brokers and been knocked back before it reached us.
What we did
We structured the leverage that made the deal work while keeping the client's business balance sheet out of it:
- Structured at 75% LVR, with client capital in of $1,905,300 (deposit plus costs)
- Day-one income evidenced: $329,873 net a year, a 5.5% net yield
- Cash-on-cash return after debt costs modelled at 12.7%
- A rent reversion and a strata-subdivision path identified as second exits
The outcome
On the two-year projection, rent reverts to a projected $513,015 net a year (a projected 8.5% yield on cost) and the valuation reaches a projected $8,500,000 at a 6% cap rate: a projected 55% IRR, with strata subdivision held in reserve as a second exit. The client's own business kept trading throughout.
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
$6.0m
LVR
75%
Cash-on-cash, day one
12.7%
What the client got
Projected reversion rent
$513k pa
Projected valuation
$8.5m
Projected IRR
55%
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