Office development, Liverpool
Strategic Investment Management (SI) is the sponsor and operator of SI Limited Partnership No 4, a limited partnership offering investors a potentially tax efficient means of investing directly in the UK commercial property market.
In April 2006, the Partnership forward funded a Grade A office building development in Liverpool’s new business district. The development is due for completion in 2007 and will provide circa 131,000 sq. ft with car parking for 126 cars. The property is part of an extensive regeneration programme in Liverpool’s commercial district and the acquisition value was £46.5m.
The property is pre-let to Hill Dickinson, a top 40 UK law firm, for 15 years with upward only rent reviews. A national law firm with offices in Liverpool, Manchester, Chester and London, Hill Dickinson currently has 143 partners and over 1000 staff, representing a strong tenant convenant.
Investor equity raised by the Partnership totalled £10m, with the remainder of the funding provided by a loan from HBOS.
Since the Partnership acquired the development, Liverpool’s commercial property sector has experienced growing prime rents and capital values.