Budlake Road, Marsh Barton Trading Estate, Exeter
This building comprises as 24,500 sq ft warehouse on a generous two-acre site on the Marsh Barton Trading Estate. This is the best and most long-established location in Exeter – close to the M5 and also the City Centre.
Acquired for £1.4m and let to SIG on a 10-year lease with a tenant break at year five (but with a penalty of £50,000) this was a Craigard Select acquisition bought for steady income but also with a variety of possible asset management initiatives - negotiating removal of the break or should the tenant vacate it was possible to refurbish or even redevelop the site with a higher density.
Given SIG is one of the country’s leading building materials merchants, the roof of the property is in a shocking condition and negotiations are in hand regarding replacement of the roof in return for a better lease.
Acquired with a 40% LTV loan from Lloyds, targeted annual investor IRR was 11.14% per annum. This was a well-bought opportunity which was acquired after it had failed to sell in a national auction.