I am pleased to inform you we have just released two new commercial sites one of which is in Manchester just off the city centre only a two minute walk from the city centre and the closest major rail link Victoria Station.
Situated alongside an already established business community this will add a much needed facility to the area. The area has a substantial business base but lacks good quality office space for both large and small tenants. Consisting of Retail on the ground floor ( £400,000.00) and commercial on the upper floors ( £100,000.00 Off Plan and £ 120.000.00 market value)
It is our aim to take as much pressure away from you as possible; therefore we provide an after sales service that is second to none. We will fully manage the development making sure it is let as quickly as possible in most cases in advance of completion.
The workspace offers tenants:
• Premier office space accessed through a striking reception area. • A fully staffed reception area. • Office suites available in 500 sq ft units or multiples there of. • Excellent natural light to all offices and equipped with LG3 lighting. • Energy efficient heating system with air conditioning option. • Lift access to all floors • 24-hour access with full security system. • Network connection capability to all suites. • High quality communal WC, shower and kitchen facilities. • Bespoke furniture/hardware packages available. • Straightforward 4-page lease with agreed breakpoint.
Our first site in Padiham, has been fully let since it completed 6 years ago. There are a variety of business’s located at this Business Centre ranging from telecommunications and childcare to a solicitors firm who have taken half of the ground floor and adapted the space to create there own office layout with reception area.
Office suites/ buildings like this are already popular and increasing in popularity as town centres and city centres become more congested, businesses feel the need to re-locate to be in a more desirable location that is also more easily accessible.
We offer our clients a superb investment vehicle for the future which may be used as a pension plan should they wish to do so.
The suites cost £ 100,000 off plan with a market value of £120,000.
E.g. a typical purchase would initially cost around £10,000.00, working over a 15-year period then the following should be achievable: Rent achievable year 1 – 3 £550 - 600 PCM, Year 3 – 6 £700 -750 PCM, Year 6 – 9 £850 - 900 PCM, Year 9 – 12 £1000 - 1050 PCM, Year 12 – 15 £115 -1200PCM depending on location of site.
After year three the rent review would add £150 PCM to each unit. Therefore every three years you gain an extra £150 PCM positive cash flow per office suite.
Offering luxury managed and fully serviced offices, these superb development provide an absolutely unique opportunity for you to invest in off-plan commercial property, in a regeneration area which is set to quite literally explode in terms of growth, investment, employment and business opportunities. Remember, the key to investing in regeneration areas is to identify an area which will undergo positive change - examples include infra-structure improvements, new jobs, expanding populations, expanding local economy, expanding services sector, and big investment projects.
Traditionally, to buy into commercial property, you need a cash deposit of between 25% and 50% for any purchase. Not so in this case. The deal is quite superb and provides a unique turnkey solution to commercial property investment. Here are the main features:
WHAT ARE YOU BUYING?
- 500 square foot office units in a Luxury Business Centre, pre-valued for mortgage purposes at £120,000 with a £20,000 discount. - £100,000 net price, so an immediate £20,000 of Equity is therefore built in. - Over two years until completion, so plenty of growth potential during the build period. - You don't need to choose a specific unit but may do so. This is almost a commodity purchase. All units are all identical and they will all be let on minimum three years leases to a tenant who has been found for you.
HOW MUCH CASH IS REQUIRED?
- 10% Deposit Required on the net price = £10,000.00.. - £ 2000.00 upon reservation remaining balance in 30 days. - Legal Fees = £500 (approx). - No stamp duty. - Mortgage fee is inclusive if using recommended broker.
WHEN DO I NEED TO PAY?
- £2,000 is required immediately. - £8,000 is required in around 30 days time. - Legal fees will be due a few months before completion. - A commercial mortgage can cover the balance.
WHEN IS COMPLETION?
- Building work will commence in December, with anticipated completion 18 months later, so around July 2009.
HOW DO I FINANCE?
- Commercial Brokers are offering mortgages at 80% LTV, so there should be no more cash to pay and the balance can be fully mortgaged. - Currently, one 'interest only' commercial mortgage example would cost £487 per month . - Alternatively, in 15 years, a typical repayment mortgage would be paid off, creating a projected £1,400 monthly income. - Mortgage costs will vary depending upon the solution you choose. Our recommended broker will assist you with this.
WHO MANAGES MY PROPERTY AND PAYS THE BILLS?
- We fully manage the business centres to maintain the high standard of finish on an ongoing basis, with guaranteed long-term tenants on full repairing leases. - Tenants pay for business rates, utilities, service charges, furniture and repairs, not you.
WHERE DO I FIND TENANTS?
- Tenants are found for you by ourselves with anticipated rentals starting from £ 550 per month to £650 per month depending on location. - Apart from paperwork, this is a hands-off situation. You are the landlord but the whole thing is managed for you.
WHAT IS THE RENTAL YIELD?
- Guaranteed yield of 8% from time of completion for one year i.e. £8,000. Thereafter, lease dependant with upward only rent reviews, typically every three years.
CAN I BUILD THIS PROPERTY INTO MY PENSION?
- This product is SIPP friendly and it can therefore be used within a self invested pension, but you must check with your financial advisor first on the logistics of this.
CAN I RE-SELL IN THE FUTURE?
- Commercial property can be sold at any time as a going concern. It does not need to be vacated by the tenant.
WHAT ABOUT CAPITAL GAINS?
- Qualifying for full business asset taper tax relief means that 75% of any capital gain is tax free. To qualify, you must own the property for at least two years and rent it out to a 'qualifying' business throughout your ownership. Most trading business tenants will qualify, but some will not i.e. large public companies.
WHERE IS THE LOCATION?
- This luxury business centre will be located in M8 just north of Manchester city centre:
WHY MANCHESTER?
Manchester has come a long way since the decline of the textile mills, the ship canal port and the heavy industry from 1950 to 1990. Manchester 's commercial centre has boomed - many banking and services have relocated from London to Manchester to take advantage of lower priced professional labour. The internet has helped to accelerate this trend in the last seven years. The commonwealth games helped cement Manchester as a great sporting town and the population has been rising as more jobs have been created. The city is less exposed to any public sector jobs declines than most northern cities and with the airport and motorway infrastructure plus a10 million population within a 50 mile radius, it's generally considered England's second city after London. We expect prices in Manchester and surrounding areas to rise at or slightly above the national average in the next five years. It may not show the stellar rises of 2001-2005, but it is likely to perform well as its competitive position gains prominence.
Summary
• Luxury Office Suite (500 Sq Ft) • Excellent Locations (J 31a M6 Preston, M65 Burnley, Speke Airport, M65 Blackburn and Manchester City Centre) • Shared Reception and Board Room Facilities • Ample Spacious Car Parking • Price £99.950 off plan £120,000 market value (Instant Equity) • Low Deposit 10% • 80% Mortgages Available (See IFA for further info) • 12 Months Rental Guarantee at 8% • Long Term Lets (3 to 5 years) • Quality Tenants • Ongoing Rent at 8% • SIPP Friendly (See SIPP advisors for full information) • Tax Benefits (Taper Relief from 40% - 10 % after year 2) • Fully Managed and Maintained
For further details email me jaime@dylanharvey.com or jtillyer@hotmail.co
