SIPP 1 – 18 and 18a South Street Dorchester
This was our first pension syndicate purchased in August 2002 at a price of £1.75 million. Eighteen clients agreed to be our ‘guinea pigs’ and we used their pension funds and debt of £1.1 million to purchase the property.
The two retail units in South Street Dorchester are let to East and Edinburgh Woollen Mills at a total rent of £138,000 per annum, but with the benefit of a Lloyds TSB rent guarantee. The leases expire in 2016.
Not only has the mortgage reduced under the repayment terms, but also the value has increased. More importantly, an investor that put in £50,000 into the syndicate will receive an income of £8,362 (subject to inland revenue maxima) upon mortgage repayment, estimated to be in 5 years time. That is a rate of 16.7% per annum, with future increases likely.
This property has excellent redevelopment potential.
< Back