Pensions boost commercial property

Commercial property and pensions are coming together again, says Philip Woolner MA MRICS of Cheffins, as property values bump along the bottom. Wily business owners are seizing the opportunity offered by low prices to acquire premises and put them into their self-invested pension schemes (SIPPS).

Industrial units in Buckingway Business Centre and on an Ely scheme where Cheffins are letting agents are known to have been purchased both for the use of the owner’s business and their pensions, as well as business units in Haverhill.

Philip Woolner claims that such pension investments have been giving a quiet boost to the local commercial property market over the spring and early summer. As leases have come to an end, company owners have weighed up the advantages of continuing to rent against the attractions of purchasing their existing premises or new ones.

“It’s not just that property prices have hit low levels but the coalition government is planning to reduce the tax relief on pension payments for high earners. Putting their business premises into their pension fund offers a better way to build their future retirement income. The business pays rent to the pension fund and the capital growth accrues to the fund, too, tax-free.”

He points to several commercial property developments around Cambridge which are attractive for pension investment. In particular, the Meridian development at Buckingway Business Park Swavesey and the newly emerging Glenmore Business Park at Waterbeach, which has a range of unit sizes, from just over 1,000 sq ft upwards which offer opportunities for owners of smaller businesses to purchase for their SIPPS.

Philip says: “It’s a good time to purchase quality commercial property – particularly as a shortage is beginning to arise as development work has slowed down considerably.”

For further information about purchasing property for investment, contact Philip Woolner on 01223 213666.