Retail Warehouse Development
Sheffield Strategic Investment Management (SI) was the sponsor and operator of SI Limited Partnership No 2, a limited partnership offering investors a potentially tax efficient means of investing directly in the UK commercial property market.
In January 2004, the Partnership forward funded the development of a new retail warehouse of circa 108,000 sq. ft., well located close to the Meadow Hall Shopping Centre and Retail Park in Sheffield for a total acquisition price of £24m.
The property was pre-let to B&Q plc on a 25 year full repairing and insuring lease. Perceived as the most successful and innovative home improvements retailer in the UK, this provided a strong tenant covenant.
Investor equity raised by the Partnership totalled £4.9m, with the remainder of the funding provided by a bank loan from HBOS.
The property was disposed of in September 2005 for £27.7m, providing an investor return of 40% in 20 months.