SIPP 2 – Westover Road Bournemouth
Purchased in May 2003 for £2.4 million the Austin Reed shop in Westover Road Bournemouth has been a landmark and listed building for many years. Within 12 months of purchase, we managed to increase the rent from £150,000 to £197,500 and this increased further at the next review in January 2009, on a stepped basis over 5 years to a final figure of £242,650.
The lease expires in 2019 and although the main lease is to Austin Reed plc, they sublet the upper floors and the two adjoining shops.
A very attractive Grade 2 listed building totalling almost 20,000 square feet and a favourite with our clients (especially those who are members).
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 income of £8,977 per annum (subject to Inland Revenue maxima) upon mortgage repayment, estimated to be in 6 years time. That is a rate of 17.95% per annum and likely to increase in the future.
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