Craigard has sold its Eskan Court building in Milton Keynes for £5.675million to Worthing Borough Council, representing an initial yield of 6.6%.
The site was purchased in 2014 for just over £3million, and comprises a multi-let office building totalling 24,958 sq ft. It is well located with easy access to both the town centre and M1 and has excellent parking. Over the last two-three years Craigard has gradually refurbished the building on a phased basis and moved rents from £14.00 to £19.00 per ft. This is a pleasing result as a couple of years ago investors considered a possible sale, but Craigard identified the potential for continued rental growth due to supply shortages and the decision was made to hold the building. This has proved to be a great judgement call as Eskan Court has now sold for £1million more than it was estimated a couple of years back – a fantastic outcome for investors and for Craigard.
“We knew that Eskan Court was a great purchase when we bought it in 2014, although there was quite a lot of void risk due to the short leases,” commented Paul Foster. “Following the right types of refurbishments targeted at occupiers’ needs, we were able to fully let the vacant space quite quickly and then existing tenants took up the slack space in the building as it became available. Our investors are delighted.”