The Brief
Our client was seeking a commercial investment that combined reliable income with long term upside.
The brief was clear: secure a tenanted NSW property with a yield above 6%, a long lease to a quality tenant, future development potential and exposure to a growing regional market.
Our Approach
We targeted off market opportunities where competition was limited and value could be assessed without the pressure of a public campaign.
Through our commercial network, we identified a freehold property leased to Reece Plumbing and completed due diligence on the lease, tenant covenant, zoning and local market fundamentals before recommending the acquisition.
The Property
A freehold commercial property positioned in the centre of Grafton.
The site comprises approximately 2,600sqm with a combination of showroom and warehouse improvements. The property is leased to Reece Plumbing on a 5 + 5 + 5 year lease with annual CPI increases.
The tenant pays 100% of the outgoings, providing a secure net income stream, while the MU1 Mixed Use zoning offers future development flexibility.
- National tenant with strong covenant strength
- Fully renovated improvements completed in 2015
- Highest performing Reece branch in the Northern Rivers region
The Result
- Exclusive opportunity not offered to competing buyers
- Strong regional location supported by ongoing infrastructure investment
This acquisition demonstrates that by combining income security with development potential, the asset delivers great cashflow today while retaining flexibility for the future.
By Dan Grantham
