SIPP 8 – Segensworth Business Park Southampton
An office building in Segensworth near Southampton and the M27, this was purchased in January 2006 for £2.225 million. The rent was £150,000 at purchase, but in early 2010 a rent increase was achieved to £165,000. The lease expires in 2016. The tenants Wave 105 radio, Young and Butt Surveyors and Azzuris Communications are in occupation, but leases are guaranteed on one office by Abbey National Estates and the other Meggitt Properties.
The location is excellent beside the main communication road the M27 close to the new Business Park and between Southampton and Portsmouth and with fantastic car parking on site.
The mortgage has reduced under the repayment terms. More importantly, an investor that put in £50,000 into the syndicate will receive an annual income of £ 7,935 (subject to inland revenue maxima) upon mortgage repayment, estimated to be in 9 years time. This is a rate of 15% per annum.
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