Craigard acquire on Trafford Park
Craigard have exchanged contracts to acquire Units 1&2, Kestral Road, Trafford Park in Manchester.
The buildings comprise two warehouses/factory units totalling just over 24000 sq ft and built about 20 years ago. The units are let to Johnson Controls and MIS Mechanical producing a total income of £134425pa. Price paid amounts to £1.1 million so the initial yield is about 11.5%.
Both tenants are in occupation and although the leases are short term Craigard will be discussing renewals with the tenants at an early date.
Paul Foster, Managing Partner of Craigard said, “The price paid is about £50 per sq.ft - less than build cost. The acquisition is therefore entirely consistent with Craigard’s strategy of buying fundamentally robust real estate with good running yields and potential to add value through a considered business plan”.