Gloucester - Sold May 2018
Craigard acquired this 52,500 sq ft high bay warehouse unit in January 2015 for £2.65million. The property had a tired roof but was well configured, in an excellent location and had expansion land. The tenant Kohler Mira was out-growing the space.
During the period of ownership discussions took place with Kohler Mira and various opportunities were explored to over clad the roof and extend the building. These proved inconclusive because Kohler Mira was not certain of its longer-term strategic needs. At lease renewal a new five-year lease with a three-year break was agreed. In the interim period the industrial and warehousing investment market had moved ahead quite substantially. Craigard analysed the alternative options of holding the asset for the future opportunities that it offered i.e. extension and development whether Kohler Mira remained in occupation or not, or to take the profits secured by yield shift and the enhanced rental secured on renewal. The perceived pricing available in the market was such that investors decided to explore a sale and a successful transaction was concluded at a very satisfactory price of £4.9 million. Investors saw outstanding returns over the period of ownership.