Meyer Timber, Bumpers Farm Industrial Estate, Chippenham – Sold December 2013
Craigard became aware of an off -market opportunity to acquire a 50,000 sq ft vacant warehouse building in Chippenham.
Meyer Timber Ltd wished to take a new lease at £220k pa for a fifteen-year term simultaneously with the purchase of the then vacant building. The tenant wished to undertake comprehensive refurbishment of the building and hoped that by buying alongside a professional investor, sufficient capital could be raised from the ‘joint venture’ to finance the works.
Craigard secured debt through Santander of just under £1.5million and raised equity from eight investors, totalling £1million in order to conclude the purchase.
Investors enjoyed and income stream for a running yield of 9% until the property was sold for £2.93million after two years of ownership at 7.07% to Mayfair Capital. Investors saw a total return of approx. 65% over two years.