Marden Southgate

The Marden Southgate Fund acquired the building adjacent to City Gate House in Chichester.  The Fund offered a fixed income of 7% plus a 50% share in any capital profits in the Fund.  The whole 30,000 sq ft building is let to the Secretary of State for the Environment, and is used as a job centre on the ground floor with the upper space occupied by the HM Revenue & Customs.

The lease to the Secretary of State is for 20 years, terminating in 2015.  An attempt was made to negotiate a new 20 year lease which would have taken effect from June 2005.  However, the Government pulled out of the negotiations and, in the absence of any obvious means of enhancing value, the Property Managers recommended acceptance of an offer for the purchase of the property of £3.8 million.  The sale of the property completed in December 2004, resulting in an internal rate of return to investors of circa 9.9%* per annum.

This Fund is closed to further investment.