Following the recent sale of Pipers Lane in Thatcham, Craigard has provided investors with the opportunity to reinvest those funds with the acquisition of Swingbridge Industrial Estate in Loughborough for £3.25million, a 7.35% NIY.
The entire site comprises of twenty four units totalling approximately 165,000 sq. ft. over 7.6 acres. The majority are held on long leases providing £1,300 per annum ground rents. Four units are held on occupational leases and range from 5,644 to 24,486 sq. ft. all fully let producing £256,700 per annum. Current tenants include Howdens, SIG and Eurocell.
“This is the perfect type of purchase for us” comments David Foster of Craigard. “The site offers lots of asset management angles. We think the estate could be repositioned within the local market, the general appearance can be improved and there is certainly opportunity to increase the rental tone across the estate. We think we can add a lot of value here. On top of that, there is a two point differential on yields between this purchase and Pipers Lane, meaning an even better income stream for our investors. So we’ve managed to secure a site in the same market, that’s fully let, with strong tenants and with an even better return – what’s not to like about that!”