SIPP 3 - South Street Dorchester
Purchased in September 2003 for £1.48 million and let to New Look plc at a rent of £95,000 per annum, expiring in 2017. We agreed the 2007 review, agreeing the rent at £105,000 per annum, a very satisfactory result at that time.
A not very attractive building, however the site has tremendous development potential and infact the Post Office adjacent has just been redeveloped (we purchased the commercial element as syndicates). That said the building is excellent in size and shape for clothes retailing.
The building is opposite the Syndicate 1 premises.
Not only has the mortgage reduced under the repayment terms, but the value has increased. More importantly, an investor that put in £50,000 into the syndicate will receive an annual income of £7,317 (subject to inland revenue maxima) upon mortgage repayment, estimated to be in 5 years time. That is a rate of 14.63% per annum and likely to increase in the future.
Additionally there is excellent future redevelopment potential for this building.
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