Craigard has completed its first offshore purchase – Bordage House, St Peter Port.
The building comprises 12,207 sq ft of good quality office accommodation with a small boutique retail unit on the ground floor. The price paid was £3.7million, representing a 7.5% initial yield.
The property has been acquired under the Craigard Select model as the property is multi-let to four tenants including ABN Amro Bank, all on long leases. The weighted average unexpired lease term is over nine years – a very attractive offer given that that there are also three-year RPI rent reviews. There is a small ground floor suite available to be let. The building was completely rebuilt behind the original façade in the late 1990’s and the various tenants have invested further money in the last year or two undertaking various improvements and refurbishments.
“We thought long and hard about an offshore acquisition but the quality of the tenants and the long leases combined with the quality of the building represented a very solid offer for the Craigard Select model,” commented Paul Foster. “The pricing at 7.5% is also very favourable compared to a similar building in say Southampton where the investment yield would be probably around 6% – about 25% more expensive in value terms. We analysed in detail the local market and felt comfortable that this would be a good investment for the medium term. Since purchase, we have added £30,000 or so to the income stream by securing a one year letting of the small ground floor suite. This will be refurbished when we get the space back next year.”