Blue Chip Commercial
Pinjarra place is located at 3 Mill Street, Mossman. Mill Street is the 2nd main street of Mossman and is the main access point to the Mossman Mill. Blue Chip tenants include Centrelink, Life Line, Neato & ITEC. The property has had many purposes over the years including the town picture theatre and an indoor sports complex but most recently it has been a mixture of commercial tenancies.
Although we have not been officially advised, I have heard that a new purpose-built building for Centrelink is to be erected in Front Street Mossman, therefore making way 252.6m2 of leasable space. As construction for this new building has not started I do not expect this to happen until at least August 2012.
The owners of the building have indicated that they intend to sell the property on auction day and will meet what is perceived to be market value, taking into account agents fees and that the tenants pay the outgoings. With the net return on the rental income at roughly $125,000 you can expect to pay the following amounts depending on your expected yield returns:
20% = $625,000
15% = $834,000
10% = $1,250,000
5% = $2,500,000
For a detailed report contact David Cotton on 0417 709 667