Strata RetailE3 Productivity SupportLease to be executed4% fixed annual reviewsLease not yet executed
Shop 11 / 482 Pacific Highway, Wyoming NSW 2250
$750,000
Negotiated · + GST · Wyoming · NSW
$43,419 net income · 5.79% net yield · 4.97% effective after outgoings
Net yield
5.79%
Before landlord outgoings
Effective yield
4.97%
After $6,174 outgoings
WALE
3 yrs
1 x 3 years (6.0 years total if exercised)
Yield by year 6
7.04%
On original price · 4% contracted reviews
01
Property
| Address | Shop 11 / 482 Pacific Highway, Wyoming NSW 2250 |
| Property type | Strata Retail |
| Title | Strata |
| Zoning | E3 Productivity Support — (Central Coast LEP 2022) |
| Permitted uses | Retail, office, food & drink, medical and business premises |
| Lot / plan | Lot 11 — strata plan number TBC from contract and title search |
| Floor area | Comparable lot 121 sqm |
| Building | 482 Pacific Highway 'Five Ways' Centre — Strata retail / commercial complex, 18+ shops. Roof and awning replaced 2021 — the two highest-cost common-property items are recently renewed. |
| Car parking | 2 spaces |
| Access | Rear laneway access via gated lane — suitable for deliveries and pickups. 2 x allocated on-site car spaces. |
| Position | Five Ways roundabout, Pacific Highway — gateway between Gosford CBD and the northern Central Coast. Confirm corner vs mid-run position on inspection. |
What we like
- Contracted income growth — 4% p.a. fixed reviews lift rent from $43,419 to ~$52,826 by end of the option term (+21.7%), no reliance on the market.
- 82 basis points of negotiable upside — outgoings are tenant-paid elsewhere in this complex and the lease is unsigned.
- Priced mid-range, not top — $6,198/sqm sits between a vacant shop at $5,124 and a fitted medical suite asking $8,077 in the same building.
- Rent is not over-cooked — sits between the two passing-rent comparables in the complex.
- Capital works de-risked — roof and awning replaced 2021.
- Broad E3 zoning widens the re-letting pool.
- Two allocated car spaces plus gated rear lane at a sub-$1M entry point.
Key risks
- The lease isn't signed — the 3+3 commences at settlement, so the whole income case is committed rather than contracted.
- GST exposure of $75,000 if the going-concern exemption doesn't apply.
- Rent sits 21% above the complex's only fresh-letting evidence (Shop 13 quoted $36,000 net = $298/sqm vs our $359/sqm); a re-let at $36-40k is a 4.8-5.3% yield.
- Floor area unconfirmed — all $/sqm assumes 121 sqm against a 114-121 range.
- Land tax not yet modelled — commercial strata, no NSW exemption.
- Strata special levy risk on an 18+ lot complex.
- Single-tenant dependency — a three-month vacancy costs ~$10,855 plus continuing outgoings.
02
Snapshot
Contracted income, not repricing. A new 3+3 lease at 4% fixed annual reviews takes the yield from 5.79% to 7.04% on the original price by year six without the market doing anything.
How to read this report
Every figure is labelled Confirmed Comparable lot Estimated or TBC. Nothing here is presented as settled when it isn’t.03
Tenant & lease
| Tenancy status | Lease to be executed |
| Lease executed | Critical No — commences at settlement |
| Use | Retail / commercial — confirm current use from listing agent |
| Initial term | 3 years |
| Option | 1 x 3 years (6.0 years total if exercised) |
| Rent reviews | 4% per annum, fixed |
| Lease type | Retail (RLA 1994) |
| Outgoings | Landlord-borne, $6,174 p.a. |
| Net rent, year 1 | Confirmed $43,419 |
Contracted rent escalation
| Lease year | Net rent p.a. | Yield on price | Note |
|---|---|---|---|
| Year 1 | $43,419 | 5.79% | Commencing rent |
| Year 2 | $45,156 | 6.02% | +4% |
| Year 3 | $46,962 | 6.26% | +4% |
| Year 4 | $48,840 | 6.51% | Option period |
| Year 5 | $50,794 | 6.77% | Option period |
| Year 6 | $52,826 | 7.04% | Option period |
04
Income & yield
Two yields matter on commercial: the headline net yield, and the effective yield after the outgoings the landlord actually carries. Most reports show only the first.
| Metric | Value | Basis |
|---|---|---|
| Net annual income | $43,419 | Confirmed |
| Purchase price | $750,000 | Negotiated · + GST |
| Net yield | 5.79% | Net income ÷ price |
| Strata admin | $4,336 | Comparable lot |
| Strata capital works | $251 | Comparable lot |
| Council rates | $1,397 | Comparable lot |
| Water | $190 | Comparable lot |
| Total landlord outgoings | $6,174 | 14.2% of net income |
| Effective yield | 4.97% | (Net income − outgoings) ÷ price |
82 basis points sitting on the table
The landlord currently carries $6,174 of outgoings. The lease is not yet executed, so this is still negotiable — drafting it with outgoings recoverable moves the effective yield from 4.97% to 5.79%.05
Cashflow
A live, pre-tax cash position. Change any input and every line recalculates. No tax offsets, no depreciation, no capital growth — cash in, cash out.
Capital required
Purchase price
$750,000
Loan at 65% LVR
$487,500
Deposit
$262,500
Acquisition costsStamp duty, legals, strata & building reports, valuation
$34,000
Total cash required
$296,500
Annual cash position — year 1
Net rental income
$43,419
Less landlord outgoings
−$6,174
Less land tax
−$0
Income after outgoings
$37,245
Less loan interest at 6.60%Interest only
−$32,175
Pre-tax cash position
$5,070
Cash-on-cash returnPre-tax cash ÷ total cash required
1.71%
Cash position over the lease term
| Year | Net rent | Outgoings | Interest | Pre-tax cash |
|---|---|---|---|---|
| Year 1 | $43,419 | $6,174 | $32,175 | $5,070 |
| Year 2 | $45,156 | $6,359 | $32,175 | $6,621 |
| Year 3 | $46,962 | $6,550 | $32,175 | $8,237 |
| Year 4 | $48,840 | $6,747 | $32,175 | $9,919 |
| Year 5 | $50,794 | $6,949 | $32,175 | $11,670 |
| Year 6 | $52,826 | $7,158 | $32,175 | $13,493 |
What this model deliberately excludes
No tax offsets, no depreciation, no capital growth, no incentive amortisation. Commercial lending typically sits at 60–70% LVR on shorter terms than residential, and an SMSF limited recourse borrowing arrangement carries additional structural requirements. Confirm your actual rate, term and LVR with a broker before relying on any figure here.06
Price analysis
Price positioning — $ per sqm against comparable evidence
| Metric | Value | Assessment |
|---|---|---|
| Purchase price | $750,000 | Negotiated |
| Floor area | 121 sqm | Comparable lot |
| Price per sqm | $6,198 | See positioning above |
| Rent per sqm | $359 | Net income ÷ floor area |
| Net yield | 5.79% | — |
| Effective yield | 4.97% | After landlord outgoings |
07
Comparables
Sales evidence
| Comparable | Basis | Amount | $/sqm | Tenure | vs subject |
|---|---|---|---|---|---|
| Shop 1 & 2 / 482 Pacific Highway, Wyoming NSW 2250 | Asking | $1,050,000 | $8,077 | N/A | Superior Fitted medical / consulting suite, corner position on the Wyoming roundabout, up to 6 consulting rooms, 2 allocated spaces. Quoted at $1,050,000 + GST and has since SOLD - achieved price not disclosed. $8,077/sqm on the asking figure. Sets the upper bound of the complex range. |
| Shop 13 / 482 Pacific Highway, Wyoming NSW 2250 | Sold · 2024 | $620,000 | $5,124 | Vacant | Inferior $5,124/sqm. Sold with VACANT POSSESSION - no tenant, no covenant, so not the same product as a tenanted asset on a fresh 3+3. This qualifier explains most of the gap to our $6,198/sqm without needing a market-movement argument. Date shown is the agent's information memorandum date. Same size, 2 car spaces, rear lane. Outgoings for this lot are itemised in the IM and are the source of our $6,174.20 figure. |
| Shop 12 / 482 Pacific Highway, Wyoming NSW 2250 | Sold | $439,000 | $3,628 | N/A | Inferior 2017 sale - exact month not confirmed, so the Date field is deliberately left empty rather than invented. $3,628/sqm. Same size but dated by nine years. Shop 12 to Shop 13 is 41% growth over seven years, roughly 5.1% compound. |
Rental evidence
| Comparable | Basis | Amount | $/sqm | Tenure | vs subject |
|---|---|---|---|---|---|
| Shop 1 & 2 / 482 Pacific Highway - quoting rent | Quoting rent | $70,000 | $538 | N/A | Superior $538/sqm. Fitted medical suite in a different use class - sets the ceiling, not a like-for-like read on a plain shopfront. |
| Shop 7 / 482 Pacific Highway - Subway | Passing rent | $44,527 | — | Tenanted | Superior National franchise covenant. ~$368/sqm assuming 121 sqm - area unconfirmed. A passing rent on a sitting tenant, not evidence of what a fresh letting clears at. |
| Shop 10 / 482 Pacific Highway - My Coast Support | Passing rent | $42,795 | — | Tenanted | Similar Local service operator. ~$354/sqm assuming 121 sqm - area unconfirmed. Again a passing rent, not a fresh letting. |
| Shop 13 / 482 Pacific Highway - quoting rent | Quoting rent · 2024 | $36,000 | $298 | Vacant | Inferior THE MOST IMPORTANT COMPARABLE IN THE FILE. $298/sqm - the complex's only fresh-letting evidence, and our commencing rent of $359/sqm sits 21% above it. Quoted as "$36,000 + outgoings + GST", which is also the proof that the complex convention is TENANT-PAID outgoings - the basis of the 82bp negotiation on our unexecuted lease. If our tenant leaves, this is roughly where the shop re-lets: 4.8-5.3% net yield on $750,000. |
08
Location
Subject site
400m · 800m · 1.6km radius
Coordinates -33.408551, 151.349586 — Chapman & Frazer listing for Shop 1&2 in the same complex, verified 2026-07-30. Basemap © OpenStreetMap contributors; imagery © Esri. Radius rings are straight-line, not drive-time.
| Position | Five Ways roundabout, Pacific Highway — gateway between Gosford CBD and the northern Central Coast. Confirm corner vs mid-run position on inspection. |
| Transport | Gosford train and bus interchange ~5 min by car (direct rail to Sydney and Newcastle). Quick M1 Pacific Motorway access. |
| Local amenity | 'Five Ways' Centre itself — 18+ shops including Subway (Shop 7) and My Coast Support (Shop 10). Gosford CBD ~5 min. |
| Region | Wyoming · NSW · Central Coast LGA |
| Flood | Not Found |
09
Risk register
Every deal has them. Publishing them is the point — a report that lists only strengths is marketing, not diligence.
| Risk | Severity | Exposure & mitigation |
|---|---|---|
| Lease not yet executed | Critical | The entire income case rests on a lease that has not been signed. Until it is, the rent, review mechanism, option and outgoings position are committed rather than contracted. Mitigation: Do not exchange without the executed lease, the disclosure statement and a 12-month rent ledger. Consider a condition precedent tying settlement to execution. |
| GST treatment unresolved | Critical | Priced "+ GST". If the going-concern exemption does not apply that is $75,000 in cash. Mitigation: Confirm both parties are GST-registered, that all things necessary for the enterprise are supplied, and that it is agreed in writing before exchange. |
| Floor area unconfirmed | Critical | Every $/sqm figure on this page assumes 121 sqm on a comparable lot basis. Mitigation: Confirm from the registered strata plan before relying on the price analysis. |
| Land tax not modelled | Critical | Commercial property attracts land tax with no residential exemption, and liability aggregates across the owner's holdings. It is currently $0 in the cashflow. Mitigation: Obtain the revenue assessment and model under the intended ownership entity before exchange. |
| Rent above the market's letting evidence | Critical | Our rent is $359/sqm against $298/sqm quoted for Shop 13 / 482 Pacific Highway - quoting rent — 21% higher. Passing rents on sitting tenants are not evidence of what a fresh letting clears at. A re-let at that level is a 4.8% net yield on the purchase price. Mitigation: Underwrite the downside case rather than the escalated figure. Obtain independent market rent evidence from a leasing agent. |
| Outgoings borne by the landlord | High | Costs $6,174 a year and 82 basis points of effective yield. Mitigation: The lease is unexecuted — negotiate outgoings recovery into the drafting. Check the complex convention in the comparable evidence first. |
| Single-tenant dependency | High | Income is binary — 100% or 0%. A three-month vacancy costs roughly $10,855 in rent plus continuing outgoings and re-letting costs. Mitigation: Hold a vacancy reserve. A broad permitted-use class widens the re-letting pool. |
| Fixed reviews widen the gap to market | Medium | Compounding at 4% a year while the market's letting evidence sits below the current rent increases the gap each year, not the cushion. Mitigation: Monitor letting evidence annually rather than treating the review schedule as free money. The option term is what protects the position. |
10
Diligence status
36 items across 7 workstreams. This is the live checklist our team works to on this asset — not a summary of one.
Pre-Purchase4
4 critical · 0 high · 0 med
Legal7
5 critical · 2 high · 0 med
Strata6
3 critical · 2 high · 1 med
Financial7
3 critical · 3 high · 1 med
Physical6
1 critical · 3 high · 2 med
Planning3
0 critical · 1 high · 2 med
Insurance3
0 critical · 3 high · 0 med
Total36
16 critical · 14 high · 6 med
The critical path — must clear before exchange
| Item | Workstream | Owner | Status |
|---|---|---|---|
| Obtain Information Memorandum / price guide from listing agent | Pre-Purchase | Buyer | Not started |
| Confirm floor area and price per sqm | Pre-Purchase | Buyer | Not started |
| Inspect property in person | Pre-Purchase | Buyer | Not started |
| Confirm tenancy status - leased or vacant possession | Pre-Purchase | Buyer | Not started |
| Title and strata search - NSW LRS | Legal | Solicitor | Not started |
| Contract of sale review | Legal | Solicitor | Not started |
| Section 109 certificate - strata information certificate | Legal | Solicitor | Not started |
| Lease review - NSW Retail Leases Act 1994 compliance | Legal | Solicitor | Not started |
| GST treatment - going concern eligibility | Legal | Solicitor | Not started |
| Strata report - independent professional report | Strata | Strata Inspector | Not started |
| Sinking fund (capital works fund) assessment | Strata | Strata Inspector | Not started |
| Special levy risk | Strata | Strata Inspector | Not started |
| Income verification - rent ledger | Financial | Accountant | Not started |
| Land tax assessment | Financial | Accountant | Not started |
| Finance and lending confirmation | Financial | Mortgage Broker | Not started |
| Independent building and fit-out inspection | Physical | Building Inspector | Not started |
11
The Handle view
Our position on this asset
Proceed to full due diligence, and lead the negotiation with outgoings recovery. Then three things must clear: the executed lease and 12-month rent ledger, an independent valuation supporting $750,000, and a strata report showing an adequately funded capital works position. If any fails, this becomes a price conversation rather than a walk-away.Suits
Income-first buyers — SMSF trustees and investors wanting contracted, escalating income at a sub-$1M entry point, who can carry a vacancy reserve.
Doesn’t suit
Growth-first buyers — the capital growth case is secondary and rests on the wider Gosford catchment rather than anything asset-specific.
—
Disclaimer
This report is general information only and does not take into account your objectives, financial situation or needs. It is not financial, legal, taxation or investment advice. Handle Properties, its directors, employees and associated entities accept no liability for any action taken in reliance on this document. Figures marked Estimated or Comparable lot are derived from comparable evidence and figures marked TBC are unresolved due diligence items; both are subject to change. Yields, cashflows and projections are indicative, are not forecasts, and assume the lease is executed on the terms described. Interest rates, land tax and acquisition costs are assumptions you should replace with your own. Obtain independent legal, financial, taxation and lending advice before proceeding. Comparable evidence and past performance are not indicators of future performance.