SIPP 9 – 41 Commercial Road Poole
This is our own office building in Commercial Road Poole and was purchased in April 2006 for £975,000 by Tim, Paul and Fiona's pension funds as a mini syndicate.
The rent is £52,000 per annum and the tenant is Lewis Innovative Investment and we expect rental growth in the future. The location is excellent, on the main road between Poole and Bournemouth and near the famous Sandbanks area.
We were also able to take a premium from the outgoing tenant that was not in occupation.
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 £9,689 (subject to inland revenue maxima) upon mortgage repayment, estimated to be in 9 years time. This is a rate of 19% per annum.
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