This investment comprises a terrace constructed in the 1980’s of traditional portal frame split into five units totalling 31,035 sq ft, and producing a rental income of £143,000 per annum. Craigard agreed a purchase price of £2.255million for the investment producing a net yield of 8.25% with a capital value of £72 per sq ft - about new build cost. The debt was secured with Lloyds Bank.
This is the first purchase for the Craigard “Select” model, targeting steadier, longer-term income streams and providing investors with slightly lower returns rather than the more traditional Craigard “value-add” opportunities. The property is let to four different tenants. The one vacant unit of circa 6,500 sq ft has been refurbished and let to Bristol Ambulance at £7.00 psf and sets a new tone for the estate. The units provide traditional industrial/warehouse space comprising clear span warehouse with smaller office content and a good sized loading apron. Craigard was aware that the asset had been well bought and the industrial investment market had moved strongly ahead since purchase. Although it was not the original plan, investors reviewed as to whether to sell or hold the asset in the light of market movements. A stunning offer of £3.3 million was obtained from an adjoining owner and the asset was sold with investors seeing a 65% return in 18 months.