SIPP 5 - Hurn Airport Bournemouth
This was our largest pension syndicate purchased in May 2005 at a price of £3.8 million and located at the Business Park at Bournemouth Airport. A modern office building, providing circa 17,000 sqare feet over two floors.
Within 24 months of purchase we managed to increase the rent from £222,000 to £256,000 per annum. The tenant is Vosper Thornycroft plc but a guarantee also exists from the international Bombardier Group. The lease ends in 2021.
We used 28 clients pension funds and a loan of £2.4 million from Nat West.
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 annual income of £8,243 (subject to inland revenue maxima) upon mortgage repayment, estimated to be in 9 years time.
< Back