Craigard continues to build on its portfolio with the purchase of a detached office building situated on the established Crossways Business Park in Dartford, Kent for just over £3million.
The site, a single storey detached building over two floors, has a net internal area of 14,916 sq ft. and a car parking ratio of 1:180 sq ft. As most Craigard properties do, the property is located in a highly desirable location adjacent to junction 1A of the M25.
The property is fully let to Westbury Homes (Holdings) Limited. However, the current tenant has entirely sub-let the property to three separate tenants, whose leases expire just before the headlease in July 2023. The passing rent is £306,643 per annum which reflects £20.55 per sq. ft.
“With the purchase price at £3,100,000 (a net initial yield of 9.34%), we managed to pick it up at an attractive price,” comments David Foster of Craigard. “It struggled to get much interest, but we feel it has strong fundamentals and there is definitely opportunity to negotiate new leases with the sub-tenants directly, as well as invest in improving the building. We’re seeing a great future for this asset and look forward to working with the existing tenants.”