The current climate for freehold investment property has prompted Warwick-based IM Properties to offer a freehold option alongside leasehold terms on a 11,112sq m distribution/manufacturing building close to J6 of the M6 motorway. The new build Unit 16 industrial scheme of 9,327sq m combined 1,786sq m of high specification refurbished office accommodation occupies a six acre (2.42ha) site is located on the Junction Six Industrial Park in Electric Avenue, Witton
Mick Jones, commercial director of IM Properties responsible for the development, says: “Given the choice, a large majority of company directors would consider buying their workspace but have been hampered by lack of supply. Last year’s poor performance by the Stock Exchange has put freehold property investment firmly on the business agenda as a means of controlling long-term overheads and boosting company pension funds.”
Share prices may have taken a turn for the better since the end of 2003, but the joint agents for IM Properties’ Unit 16 scheme, Colliers CRE and Phoenix Beard, confirm that the option of freehold will appeal to many owner/occupiers or property investors located in a Regeneration Zone means that this particular building is exempt from the recently introduced swingeing Stamp Duty Land Tax (SDLT), providing a huge saving to companies opting for leasehold terms.
For example an incoming occupier to a 10,230sq m building signing a 15-year lease on terms of £5.50 per sq ft would be faced with a SDLT payment of £74,431 at the outset based on a building registered for VAT. Under the original pre- 1 December 2003 tax regime the payment would have only been £12,925.
Stephen Manners, senior development manager at Advantage West Midlands responsible for establishing local Regeneration Zones, comments: “Advantage West Midlands aims to create more and better jobs and an enhanced quality of life for all in the West Midlands. We are therefore welcome to Stamp Duty Land Tax relaxation which means that occupiers will be attracted to areas where jobs are most needed.”