Craigard

SIG Unit

Sold October 2022
Bought For: £1.4M.
Sold For: £2.71M
The Asset: 24,500 sq. ft. warehouse on a large site of circa two acres situated on the Marsh Barton Trading Estate

From original investment, investors received
a profit of

80%

This was our first acquisition of 2019. The property comprised a 24,500 sq. ft. warehouse on a large site of circa two acres situated on the Marsh Barton Trading Estate which is a well recognised industrial location within Exeter. The building was let to SIG on a 10-year lease with a five-year break (with penalty) from 2017.

The profile of this investment suited our Select Model with a focus on steady income but also presenting a number of possible asset management initiatives. The tenant is one of the country’s leading building materials merchants, however the roof of the property wasn’t in a great condition. The building had been heavily used and was in a poor state of repair.

Surprisingly, the building had failed to sell at auction which presented Craigard with an excellent opportunity

Surprisingly, the building had failed to sell at auction which presented Craigard with an excellent opportunity. Subsequently, an approach was made to buy the asset and a deal was agreed at £1.4million, reflecting 8.23%.

Over the duration of our ownership, we successfully implemented a number of asset management initiatives. This included agreeing a deed of variation with the tenant to remove their break, settlement of the rent review, and funding 50% of the cost of a new roof which significantly improved the overall building quality.

The asset was sold for £2,710,000 reflecting a 4.69% NIY. Timing of the sale was also opportune in a market that was quickly reacting to PM Liz Truss’ shock mini budget.

Over the hold period, which was circa four years, investors received an 80% profit on their original stake, as well as distributions received throughout.

Get in touch

contact
01489 880100
info@craigard.biz
1650 Parkway, Solent Business Park, Whiteley, Fareham, PO15 7AH
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