GENO Lion Plaza

The investment offer presented here is an opportunity to invest in Lion Plaza, a newly constructed trophy building in the centre of the City of London next to the Bank of England.

The Prospectus assumes annual cash distributions of 6% p.a., and there is also the prospect of capital growth over the investment period, although none of these returns can be guaranteed.

Like any investment in property, the most important factor is location. It is hard to imagine a better location than that of Lion Plaza, situated in the City of London just yards from the Bank of England, opposite Royal Exchange and beside the old Stock Exchange building.

With the financial services sector of the economy running at twice the rate of growth of the rest of the UK, and space in the City of London in relatively short supply, it is expected that commercial property prices will be at least maintained for the foreseeable future.

The property was completed in February 2005 and purchased by GENO Lion Plaza GmbH & Co. KG (the “Fund”) in November 2005 prior to the substantial rise in property values experienced in 2006 and 1Q 2007.

Overall office rents in the City of London increased 8.1% during 2006 whilst prime rents increased 20%, up from 6.7% in 2005. As demand for top quality space is likely to exceed supply for some time to come, further increases are expected. Overall office vacancy in the City is currently at its lowest level since 2001, driving the growth in rental values.

When purchased, the property was 78% let. Doric’s active asset management has now achieved full occupancy, with a consequent rise in value for this property.

The property was purchased at a cap rate of approximately 5.86% (based on then-projected rental income and excluding costs of acquisition); currently cap rates for office properties in the City of London have fallen to below 4.5%. In fact an indicative offer was received for the entire property in February 2007 for a price of GBP 250 million and a recent valuation, conducted by Colliers CRE on behalf of the lender, put the value at
GBP 240 million.

The property represents everything which characterises Britain’s capital city: an historic facade dating back in its origins to the 19th century and a completely redeveloped complex comprising modern high quality Grade A office and retail premises. The open plan, column free floor space is exceptionally flexible and therefore attractive to a range of professional services sector tenants. The property benefits from long-term lease contracts with major tenants with an average remaining tenor of 18 years.

Unlike “blind pool” real estate investments, this offer concerns a property that has already been purchased, with long-term debt that is in place, long-term leases that have been secured and active asset management that has already had a positive effect on value.

The minimum investment in the Fund is GBP 20,000.

Significant tax efficiencies may be achieved through the use of SIPPs to hold this investment.

This opportunity is the latest of Doric’s fund partnerships and the first to be distributed to investors in both the UK and Germany.

How to invest
Please contact your IFA, who will be able to obtain a copy of the full UK Prospectus from Investment Quorum – 0207 337 1390 – www.investmentquorum.com

Please see News for updates on GENO Lion Plaza.