Craigard has made its second commercial property investment acquisition on Guernsey through the purchase of the Cimandis food processing and warehousing facility on the Pitronnerie Road Industrial Estate just outside St Peter Port.
Cimandis has a lease until the end of 2025 at a rent of £345,000 per annum. The two buildings in totalling just over 45,000 sq ft form one of the largest single warehousing complexes on the Island and have a secure service yard and parking. The price paid of around £4m equates to an initial yield of about 8%.
“Cimandis has already invested heavily in the site which serves the local catering and hotel trades,” Paul Foster of Craigard commented. “We consider this a solid investment acquisition – the buildings are in good condition with a new roof, the tenant is clearly committed to the site with a long lease and new investment in plant. The business is a very sustainable and important one to the Island serving its tourist industry. It is therefore reasonably robust to Brexit and external financial pressures. The building is one of the rare larger complexes on offer on the Island but does have the ability to be sub-divided should Cimandis ever need to relocate. The price paid is attractive to our mainland UK investors as the investment yield of a similar asset in say Hampshire would be at a significant premium.”
Watts & Co acted for the seller.