Flexus, Segensworth, Fareham - Bought and Sold in 2016
The building comprised a dilapidated 30,000 sq ft two-storey Research & Development facility. It was sold by an LPA Receiver on behalf of an owner occupier which went into administration. Craigard agreed a purchase price of £1.2million for the long leasehold interest where Hampshire County Council was the freeholder.
The head lease held numerous complicated restrictions, which Craigard renegotiated in return for a premium. This included extending the lease term to an institutional standard.
The property comprised two buildings linked together which were in need of complete refurbishment. Craigard’s business plan was to strip the building to a shell condition and then market the property for all opportunities. Craigard was then able to respond flexibly to occupier demands, whether refurbishment to offices, R&D or complete redevelopment for industrial use. After a short period of marketing, ‘Just Develop It’, a local IT company expressed an interest in purchasing the property for its own occupation. A sale price of £3million was agreed, with Craigard carrying out some enabling works.
The investors secured a return of circa 100% on their investment in just six months. This represents the best return Craigard has achieved to date and will probably remain so for some time to come.