Craigard Crystallises on an Astute 2015 Purchase
Craigard has sold the Kohler Mira building in Gloucester for £4.9million.
The building was acquired in early 2015 for £2.65million. Comprising a 12m to eaves high bay distribution shed of 52500 sq ft with expansion land, a lease renewal had been concluded to Kohler Mira for five years at an increased rental of £300,000 per annum. As part of the renewal deal the roof has been over clad with landlord and tenant sharing the cost equally. The building has now been sold to CIP Threadneedle UK Property No 1. The deal has more than doubled the Craigard Investor’s original investment.
“It was an offer that we felt we had to take,” commented David Foster. “The building has strong fundamentals for future asset management, there is a general shortage of supply of high bay space, the location was just off the M5 and there was scope to reconfigure and extend the building in the medium term. But we purchased the asset at just the right time and since then the market for this type of product has surged. So, having concluded the lease renewal we reverted to our investors to whether to hold or sell and given the strength in the market there was a resounding vote to proceed with the disposal. Our investors are rather delighted (as are we!).”
CBRE acted for Craigard and LSH acted for Threadneedle.