Craigard Secures Quality Office Acquisition In The Heart Of Southampton
Mar , 12
Craigard Purchases a Portfolio of properties in Mitcham, Canterbury and Sittingbourne
Craigard has purchased a small portfolio of industrial units; two solus units and a small four unit estate located in Mitcham, Canterbury and Sittingbourne respectively.
The portfolio was acquired for £5,500,000 which reflects a net initial yield of 5.3% or £163 psf. Sittingbourne and Canterbury are held freehold and Mitcham is a long leasehold but with a 999-year virtual freehold. All the units are fully let to well-known trade/retail sector occupiers (six companies in total).
Whilst being fully let, the assets offer differing scenarios with short term expiries coming up in Mitcham and Canterbury and Sittingbourne being a longer term income play.
“The total passing rent for all the assets is £307,860 per annum exclusive,” comments David Foster of Craigard. “Whilst this is a lower yield and higher capital value than we would normally buy into, the assets are quasi retail, around the M25 and are considered highly reversionary, so once the lease renewals are completed or re-let, we anticipate the reversionary yield to be around 7%+.”
“The leases at Mitcham and Canterbury expire this year so there is some immediate asset management to do on these assets,” David continues. “Both properties are under-rented and in great locations so whether the tenants stay or go, we are confident these assets would be well received in the market at strong rents. Once the properties are re-let, the assets will be sold off on an individual basis.”
