Aqua Commercial Partnership LLP 3
The partnership purchased the freehold of one of our neighbouring properties 37 Commercial Road, Poole in May 2007 for a price of £980,000. The offices of 4600 sq ft although vacant, benefited from a lease with a rent of £60,500 per annum with 7 years remaining.
Through Goadsby we negotiated the surrender of this lease for a payment to the partnership of £180,000.
We then split the building into two floors, letting each floor out on new 10 year leases for a total rent of £72,000. The value of the property is now £1,000,000.
Through the use of Nat West gearing we have achieved a return of 56% over a 9 month period. Total funds invested in this partnership amounted to £276,000 including three of the management team from Lewis’.
The investment is likely to be held for a total of 5 years when the tenants have options to purchase their 999 year lease (virtual freehold).
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