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Craigard commercial property syndicate acquires Yeovil trade counter with established tenant

A Craigard commercial property syndicate’s latest acquisition highlights strong demand for assets with good defensive reversionary income.

Craigard and its fellow syndicate investors have acquired the freehold of a prominent Yeovil trade counter.

The syndicate was able to snap up the property thanks to Craigard’s deep understanding of the local market, based on past successes in the area.

The 1,033 sq m (11,127 sq ft) distribution unit is based on the Lynx Trading Estate, a leading industrial location in Yeovil.

It benefits from strong transport links and sustained occupier demand within a diverse local economy spanning aerospace, manufacturing and logistics.

The 0.30-hectare (0.75-acre) property in Gazelle Road includes 107.4 sq m (1,156 sq ft) of ground floor offices and a secure yard.

Formerly Euro Car Parts Ltd, now LKQ Euro Car Parts, the unit is fully let to LKQ Group (UK) Ltd on a lease which runs to July 2032.

The tenant has been in occupation since 2012 and has invested heavily in the unit which serves as the company’s sole branch within the South Somerset/North Dorset area. Its catchment isolation reinforces the branch’s operational importance within its regional network and the company’s long-term commitment to the site.

LKQ Group (UK) Limited is a leading distributor of aftermarket vehicle parts and services across the UK and Ireland. It is part of LKQ Corporation, a Fortune 500 company.

The LKQ Euro Car Parts division is the largest distributor of car and light commercial vehicle parts in the UK. It offers 100,000 different parts across around 280 branches.

Craigard Investment Manager Matthew Barker said: “This acquisition met the needs of our more income-focused investors. It provides stable income with scope for rental growth supported by a 2027 rent review.

“The property is a well-located, well-specified unit with low site coverage (34%) within an established industrial area.

“It offers strong reversionary potential from its currently low passing rent and is let to a long-term occupier with an excellent covenant, providing robust income security,” he added.

Craigard always co-invests. The Hampshire firm has an £85 million portfolio comprising around 20 assets under management. It has raised £100 million in private equity and exited 28 syndicates with a proven track record of delivering strong returns.

Craigard recently celebrated its 20th anniversary. The team is currently working on a series of commercial property syndication opportunities.

Yates Real Estate and Edmonds Commercial advised Craigard on the Yeovil acquisition. The vendor was represented by Cortex Partners.

For further information, please contact Craigard.