SIPP 6 - Meggitt plc Hurn Airport Bournemouth
Built behind our existing Syndicate 5 and prelet to Meggitt plc we exchanged contracts with the developer before the office building was completed in January 2006 at a price of £2.075 million.
This is a top level building used by Meggitts as their head office and we believe the tenant spent circa £300,000 on the fit out. The rent is £133,000 per annum.
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 £7,767 (subject to inland revenue maxima) upon mortgage repayment, estimated to be in 9 years time. That is a rate of 15 % per annum.
The location beside Bournemouth Airport is very much improving.
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