Full Acquisition Mandate · Commercial
An SMSF Commercial Acquisition Built Around Covenant Strength
Property type
Freestanding commercial office, single tenant
Location
Inner Brisbane commercial precinct
Initial asking
Asking price positioned above assessed replacement cost and comparable evidence
Outcome
Below initial asking price, informed by the underwritten value range rather than the vendor's guide
This scenario is representative of the Hastings Beaumont methodology described on our services page. It is not a record of an actual client transaction, and the figures shown are illustrative rather than a specific client result.
The client brief
A self-managed super fund trustee sought a single-tenant commercial holding to deliver a stable net yield inside the fund, with a strong covenant, minimal capital works exposure and a lease term long enough to satisfy the trustees' income planning.
Acquisition strategy
- A written investment brief set the target net yield, maximum acceptable vacancy risk and gearing envelope before any asset was shortlisted.
- Off-market enquiries were made directly with agents and owners in the target precinct in addition to reviewing listed stock.
- Every shortlisted asset was underwritten against the same twelve-point framework used across all Hastings Beaumont mandates: covenant, lease terms, replacement cost, vacancy risk and reversion.
Market analysis
- Comparable sales and rental evidence in the precinct were reconstructed from source documents rather than agent-supplied summaries.
- The tenant's covenant, trading history and occupancy cost ratio were assessed to determine the sustainability of the passing rent.
- Land rate per square metre was benchmarked against recent comparable sales to establish a replacement-cost floor for the asset.
Negotiation strategy
- A written maximum price was agreed with the trustee before any offer was made, removing the risk of decisions made under campaign pressure.
- The evidence position built during underwriting was used to support a price below the initial asking level.
- Settlement terms were structured to include a rent guarantee period aligned with the lease review date.
Outcome
Result
Final price
Below initial asking price, informed by the underwritten value range rather than the vendor's guide
Saving achieved
A negotiated outcome inside the mandate's written ceiling, representative of the approach rather than a specific figure
The fund acquired a holding consistent with its investment mandate, with the passing yield, lease term and covenant quality matching the criteria set at the outset of the engagement.
More scenarios
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