Industrial property, metro Brisbane · 2024
Declined twice. Then $1.5m of equity in nine months.
A freestanding industrial property, bought run-down off private treaty and turned around. The deal had been knocked back before it reached us. Nine months later it carried over $1.5m of new equity, sitting outside the client's business.
The situation
A metro Brisbane industrial property of 2,087 sqm, run-down and offered off private treaty, purchased in 2024 for $3,400,000. This deal had been to other brokers before it came to us, and it had been knocked back.
The financial story it had been presented with did not carry the value-add plan or the condition of the asset. So we rebuilt it from the evidence.
What we did
We structured the debt for the condition of the building and the refurbishment plan, not for the tired numbers a generalist file would have shown a lender:
- Total project cost built up in full: $3,998,215, including a $400,000 refurbishment
- Total cash deployed set out against every funding line: $1,618,215
- The debt structured for a run-down asset with a credible path to re-let and revalue
- The client's operating business kept trading, its balance sheet left intact
The outcome
Nine months later the property was re-let at $300,000 a year net and revalued at $5,000,000 (March 2025). The net profit position was $1,001,785, a 62% return on the funds deployed, and over $1.5m of equity uplift inside nine months, now building on the outside of the business as well as the inside.
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
$3.4m
Total project cost
~$4.0m
Cash deployed
~$1.62m
What the client got
Revaluation (Mar 2025)
$5.0m
Equity uplift, 9 months
$1.5m+
Return on funds deployed
62%
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