SIPP 21 - Gillingham
The Purchase price is £355,000.
The property is situated on a new industrial site just outside Gillingham town centre, adjacent to a new large nursing home and recently built residential properties.
The syndicate is buying 3 adjacent units, converted into one trade counter property, on a freehold basis. The fourth unit in the block is owned by a non connected party.
Edmundson Electrical Ltd has 13 years remaining on a 15 year lease from 27 August 2008, on all three units, without any break options.
The annual rent is £22,000 per annum , subject to 5 yearly upward only rent reviews. The lease is full repairing and insuring.
The building has a vacant possession value higher than the investment price and the second phase of the estate is likely to more than justify the price.
The vacant possession value is estimated to be £420,000.
Edmundson Electrical Ltd appear financially secure, with a net worth of £131 million and a turnover of £865 million in 2009. Profits for the last financial year were £22 million. These figures are from the latest published accounts.
The company was founded in 1801 and is now the leading distributor of electrical equipment to trade and industry in the UK. With 250 branches throughout the country this company is a very secure distributor.
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