Craigard Investors Exit Cirencester in Brexit Close Vote! And in a deal duo Derby goes in the same week
Craigard has delivered a great return for investors through two recent property disposals.
Since purchase in 2014, Craigard has proactively asset managed its 13000 sq ft modern office investment in Cirencester. The long-standing tenant Corin was known to be vacating at the time of purchase but still had three years remaining on the lease. Craigard worked with Corin in jointly marketing the space and as a consequence secured two very good new tenants – Sodra Wood Limited and Trust Data - both on 10-year leases. Corin secured an early exit from the lease obligations. As such the asset then comprised a very good investment for the medium term.
As is the norm once the initial business plan is concluded, Craigard took soundings with investors as to whether to hold the asset or sell. It was a good building but the market had also strengthened quite considerably since the time of purchase. Investor voting was Brexit close – 52% to 48% to sell! Craigard executed a disposal at £2.175million – original purchase price £1.4million.
Commenting on the overall project, Paul Foster said: “Our investors have seen a double your money return over three years. This project has shown the Craigard model at its best – spotting local market assets at undervalue, and carefully working with our tenants to secure mutually beneficial outturns. Combined with good timing of the purchase in a rising market, the blend of asset management and market shift has delivered an outstanding result!”
In the same week Craigard also disposed of its office building in Derby. Acquired for £1.6million in 2016, Craigard bought in the knowledge that the building would need medium term capital expenditure by way of new air conditioning and a general refit. Craigard engaged with the incumbent single tenant, Zibrant, to achieve a managed refurbishment of the building with them in situ, alongside a downsizing to two floors out of three which is what Zibrant desired for their longer term occupational needs. The building was refurbished throughout 2017 and the vacated top floor was re-let to Liaison in early 2018. The resultant investment created was a good quality modern building with two good long-term tenants. Supply side on Pride Park is historically quite low so there are reasonable prospects for some rental growth in the future. A sale was executed at £2.82million producing a very good profit for the investors.
Commenting on the disposal, Paul Foster added: "Again this project showed our skill sets to good effect - a tricky, well-managed project in tandem with our occupier. An under-valued asset in a provincial market turned around to a good investment."