Craigard has secured the continued occupation of three of its tenants at Swingbridge Trading Estate.
All the tenants were in place when Craigard acquired the site back in September 2018 and this has been the first round of lease events under Craigard’s ownership. Trade kitchen supplier and joinery specialist Howdens has agreed a five-year reversionary lease from November 2025 when its existing lease expires, securing its presence at the site until 2030, in return for six month’s rent free to allow it to undertake some improvement works. The 2020 rent review was also settled as part of the deal.
Windows, doors, roofline and conservatory specialist Eurocell has also signed a five-year lease at £6 per sq. ft. with four month’s rent free, and lastly insulation and sustainable building products supplier SIG has agreed a two-year extension at £6.50 per sq. ft.. SIG’s lease gives it the option to relocate at expiry when it is hoping to consolidate two operations into one building, which will in turn give Craigard the opportunity to refurbish the unit to increase rental income in the future.
“These lease renewals have generated a great result,” comments David Foster at Craigard. “Even though this is one of our more steady investments, we have managed to increase the income with Howdens and Eurocell by 15% and 30% respectively. This has brought it in line with the rental tone of the area. We now have time to plan any the refurbishment of the SIG unit when it vacates in a couple of years, which would mean we could modernise the unit and make it attractive to future tenants, whilst pushing rents further. With a lack of new development in the area and the right product, we’re confident that we can secure a new tenant quickly come the time.”