Craigard has sold its 24,076 sq ft warehouse development in Exeter to Grammont Group for £2.71m
The self-contained site, spread across 2 acres on a self-contained secure site, was purchased in 2018 for £1.4m and is fully secure. The building is let to SIG Trading Ltd at a rent of £135,000 / £5.60 psf. Prior to the sale, Craigard agreed a deed of variation to remove the September 2022 break clause, settle the rent review and agreed to go 50/50 with SIG on the cost of a new roof for the property. This significantly improved the quality of the building given the existing roof was the original asbestos roof, as well as showing SIG’s commitment to the building longer term.
“This was a really good result for investors,” comments David Foster. “A positive return, as well as an income throughout the hold period. Over four years they received a 60% profit on their original investment and plus interest on their stake during the hold period. Timing was also very opportune as we managed to secure a very attractive exit yield just before the market turned. That said, this is an attractive and highly reversionary asset in a good location so we are sure the asset will perform well for the new buyer. This was evidenced by the strong interest we had during the marketing and bidding process.”