One of Craigard’s iconic buildings, Spectrum, has been sold to a to private family investment fund at an initial yield of 6.82%.
Located on Solent Business Park at Junction 9 of the M27, Spectrum is synonymous with the Craigard brand as it highlights the asset managers’ full array of skill sets and ability to make solid judgement calls over a medium term business plan.
Originally acquired back in 2012 for £800,000, the building was very sad, very empty and in need of total refurbishment. Around 30% of the office space on Solent Business Park was vacant. Following an initial presentational refurbishment, the building was offered to the market on a fully flexible basis with a works package to suit an incoming occupier’s requirements. Mitie was secured as the first tenant, and over the following two years the building was refurbished and fully let. A sale was contemplated in 2016 but the investors decided to refinance and hold the building for the longer term, resulting in further capital growth plus in the meantime received rental income.
“The decision to sell was driven by the prospect of market volatility in the near term due the Brexit debate and the recent conclusion of lease renewals on the ground floor which reinforced the buildings long term income,” comments Paul Foster. “We’re delighted with this fantastic result, as are the syndicate of investors who have supported us with this project since 2012. It’s definitely paid off, and now we’re on to the next development to start it all over again!”
Colliers International acted for Craigard and Avison Young advised the buyer.