Sherwood Park - Purchased April 2016
This investment comprises two, two-storey detached office buildings constructed on the 1990’s of steel frame construction with pitched roofs comprising 52,161 sq ft.
Fountain House is a single let to the Highways Agency for 10 years, with a break after five years, the tenant took occupation prior to its purchase as were undertaking complete refurbishment of the building.
Waterfront House is multi-let to three tenants, E-On UK Plc, The Secretary of State for Communities and Local Government and The Police & Crime Commissioner for Nottingham on three shorter term leases.
The purchase price was £5,050,000. The property was purchased on behalf of a syndicate of investors at a net initial yield of circa 10% with a capital value of £100 per sq ft. Debt was secured with Santander.
The buildings are located on Sherwood Park, a prime out of town office park for Nottingham comprising 600,000 sq ft of office accommodation, providing excellent road links.
The business plan is slightly different to the normal “value add” Craigard syndicates – seen as a longer term “cash cow” due to the limited growth expectations for the asset but a multi-let nature giving a 10% per annum return.
Craigard is actively asset managing to secure longer term tenancies and increase rental income where possible.
Following the purchase, Craigard and its managing agents reviewed the service charge and reduced the annual costs for tenants, undertaking a full refurbishment of the reception common areas and toilets in Waterside House which has significantly improved the property’s image.