IIB Bank Private Banking has announced a new UK Commercial Property Investment opportunity based in Leeds - the largest commercial and regional centre in the North of England, and regarded as the principal administrative, financial and commercial core outside of London.

IIB Bank Private banking are purchasing the property at a cost of £17.5million (Stg) and are offering investors a chance to partake in the investment at a minimum investment level of £150,000.

IIB Bank says that 34-39 Boar Lane is exceptionally well located and offers investors an opportunity to participate in the acquisition of a prime commercial space positioned within Leeds’ central office district, opposite the mainline railway station and Leeds shopping Plaza.

Constructed in 1992, the building comprises office accommodation arranged over lower ground, ground and five upper floors together with retail space at ground floor level with frontage to Boar Lane. Arranged around a courtyard with 52 car park spaces, the retail and office space combine comprises 4597.4 sq m (49,491 sq ft).

The property is let to CGU International Insurance Plc – a wholly owned subsidiary of Aviva Plc - the world’s sixth largest insurance group and the biggest in the UK. It is let for a term of 25years from 29th September 1992, to expire 28th September 2017 at a current rent of ₤970,000 per annum and subject to five yearly upward reviews.

Taking into account property and economic market conditions, IIB predicts the investment term is expected to be between 5 and 8 years – at which point the building would be sold. IIB’s predictions foresee an annual return (IRR) of 8.2% - meaning a £150,000 investment today will grow to a pre-tax figure of £282,000 after the 8 years – a total return in the region of 50%.

GVA Grimley - the Leeds based Property Advisors involved in this deal - offer positive predictions on annual growth, saying “2006 should be another good year of performance, whilst unlikely to reach the levels of 2004 and 2005 – returns of 9% are forecast for 2006, rising to 10.5-11% by 2008.’’

IIB Bank Private Banking is offering investors an opportunity to participate in this acquisition. (The minimum investment level is £150,000).Investors interested in participating should contact IIB Private Banking immediately, as the property is due to close in May.

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By Finfacts Team

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