Craigard has sold its landmark office building, Prism, for £5.1million to LMF Holdings Ltd.
The building spans 29,432 sq ft of office accommodation arranged over three floors. Purchased in September 2016 for £3.2million, the investment was part of a longer term strategy to utilise opportunities for refurbishment and grow the overall rental income. Prism sat alongside similar property Spectrum as one of the two flagship developments for Craigard. Upon ownership, Craigard took the opportunity to refurbish several areas of the building including the periodic installation of air conditioning into suites and a 1GB fibre network available for tenants use as well as refurbishing several of the external and communal areas to reposition the asset in the market. Upon sale the building was fully let at a rental income of £470,567 per annum reflecting a net initial yield of 8.66%.
“Prism has been a fantastic (and sometimes stressful!) investment to work on,” comments David Foster. “We knew the opportunities that the building presented, and we had already worked successfully on Spectrum so we knew it was a good building. Obviously the transport links are being improved, and Solent Business Park is home to many big companies in the area due to its location and facilities. We quickly identified where we could grow the potential in the building, and it’s absolutely paid off even through a pandemic. The syndication supporting this knew that we’d be in this for the medium to long-term, and we’re delighted that we’ve managed to secure such a great price for the building.”
ACRE acted for Craigard.