Linea - Sold March 2016

A modern, three-storey, 22,000 sq ft office building, located on the primary Business Park in Fleet. The property was purchased in early 2015 for £2.8million, reflecting a net initial yield of circa 8.25%. A loan of £1.55million was secured from Santander.

At the time of purchase the building was approximately 75% let. Over a period of 12 months, Craigard secured a letting of the remaining vacant space. The four tenants (Grass Roots Eventcom Ltd, Anite Telecoms Ltd, Verisk Analytics Ltd and PRMA Consulting Ltd) were paying a combined rental income of £303,339 per annum, producing a running yield of circa 10%.

There were various upcoming lease events, so whether to sell the property or to hold the asset in the portfolio was discussed with investors. It was decided that a sale of the building was the best line of action to cash in on the profit. The property was sold in March 2016 for £3.7million reflecting a net initial yield of circa 7.75%. The investors secured a total return of circa 50% over a 15-month period. Since sale Anite has exercised its break!