Eaglepoint, Junction 9 - M27 – Sold December 2013
Eagle Point is a Grade A landmark office building constructed in 2005. The building totals just under 30,000 sq ft on three floors with an excellent parking ratio of 1:275 sq ft.
Upon completion, approximately 50% of the space was let to a government body on a full institutional 15 year lease at £19 per sq/ft. The developer then struggled through the following recession to find a tenant for the remainder of the space and fell into Receivership.
Craigard identified an opportunity to acquire the building at a price of £3.1million, secured a banking offer from Santander of £1.84million and raised private equity of £1.5million. The price equated to about £105 per sq/ft c.f. a new build cost (excluding site fees, finances etc.) of £125 per sq/ft. The initial yield netted to about 8% after non-recoverable void property costs.
The initial business plan was over three to four years, however lettings were concluded inside eight months and the property was sold just under one year after purchase at £4.627million to Threadneedle.
Investors received a return of 75% inside twelve months. This was a combination of good judgement and good fortune. This figure was thought to never be repeated – but since it has!