Prime property from Tritax offers income of 8%

Tritax, one of the largest independent property specialists, has launched a new fund offering prime property to private investors.  With a long lease to an institutional tenant, the £22 million of prime office building in Marlow aims to generate 8% p.a. income and over 10% pa over the 3 year investment term.

The acquisition follows the recent sale of the Tritax IHG property fund, let to InterContinental Hotels Group, which generated 20% capital uplift over 18 months for investors, in addition to an income of 6.25% pa.  Tritax sees the Tritax Cobham Marlow fund as an ideal substitute given that this property offers  a more valuable site, longer outstanding lease, and higher guaranteed rental uplifts.

The Tritax Cobham Marlow LP is seeking £9.5 million of equity to buy a £22 million office let to Cobham Plc, the communications specialist, which is the 103rd largest company listed on the London Stock Exchange. A further 15.5 years remain on the lease along with guaranteed rental uplifts of 2.75% pa. The tenant has indicated an interest in further development which could enhance the returns achieved still further.

Anthony Wyld, head of marketing at Tritax comments; “Investments such as this are generating 16 times what investors are picking up in cash funds, and twice the yield of the FTSE All-Share Index. Commercial property is once more a highly attractive source of income and unlike open ended property funds, Tritax specialises in single asset funds which can hold property short term to be sold with  over 10 years remaining on their lease”

Minimum investment is £20,000 for direct investors or for SIPPs/SSAS through an exempt unit trust. IFA commission is 3%, plus 0.5% trail. It is expected that the fund will close in mid January 2011, or earlier depending on demand.

For more information, visit tritax.co.uk.