Benbow House, where Athanor has achieved returns for investors of 37 per cent over five years.
In spite of a globally depressed property market characterised by considerably reduced property values, Athanor International Property Investments has achieved a notable return of 37 per cent for investors on a UK commercial property which was recently sold – Benbow House in central London.
In a joint venture with Pam Golding Properties (PGP), Athanor facilitates quality UK property investment opportunities for South African and foreign investors, with up to seven prime properties acquired annually.
Eric Mounier, chief executive of the Athanor/PGP joint venture says: “Following the global credit crunch and in a market where property values have declined by more than 40 per cent over the past 28 months, the achievement of a 37 per cent return for investors in this central London property is significant.
“The property was acquired five years ago. It is in a prime position at Southwark Bridge, London SW1 and is tenanted by Pizza Express and Starbucks, with a residential component above. The property has always been fully tenanted and the major lease is for 25 years – with 18 years still to run.
“Although outstanding returns of between 14 and 48 per cent a year were achieved by Athanor for properties sold in the up-cycle between 2004 and 2007, Benbow House was sold in the worst market conditions experienced since the 1930s. This clearly illustrates the importance of acquiring quality assets typified by favourable locations, strong tenants and long leases,” says Mounier.
Property values have reduced considerably, and opportunities exist for acquiring sound properties in the UK at very favourable prices. For South African investors exchange controls have been relaxed, enabling individuals to take out offshore allowances of up to R4 million, increased from R2 million.
“Consumer confidence is returning and the UK is showing signs of recovery and re-emerging as an attractive option for medium to long term investors. The IPD (Investment Property Databank) commercial property index revealed upward movements in capital values in August and September 2009, the first time in over 26 months. We believe this indicates the start of an upward cycle during which investors buying blue-chip, prime located properties in the current depressed market will achieve exceptional returns over the next three to five years,” says Mounier.
Athanor’s latest acquisition offers investors the opportunity to acquire a stake in a prime positioned convenience store with a petrol station in Hemel Hempstead, a thriving commercial centre and affluent commuter town just 22 miles north-west of central London. The property is let to Somerfield Stores Ltd – with fixed annual rental increases and 18 years unexpired lease, and with guarantees from Co-operative Group, the UK’s largest mutual retailer with sales of over GBP10 billion. Over the past decade the convenience store market has experienced significant growth.
Marco Rapaglia, director of Athanor says: “This property has excellent investment potential, underpinned by the rising demand for fuel and continuing expansion of the forecourt convenience store market.”
Call Arnold Urson of Athanor on 021 4177878 or 083 375 7880 or email arnold@athanor.co.za.
