New Beginnings for New Barn as Craigard Sells Site for £2.4million
Craigard has sold the New Barn in Petersfield for £2.4million to East Hampshire District Council, representing a net initial yield of 7.68%.
A 20,000 sq ft former research and development building, the site was purchased in January 2014 for £1.56million alongside the tenant Moneybarn. Following an extensive refurbishment, funded by both Craigard and the tenant, it offered quality contemporary style offices with additional floor area for expansion. Moneybarn was then acquired by Provident Life and it was decided that this was the ideal time to sell, which has proved a sound decision, returning investors with a healthy 66% return in two years.
“We invested £300,000 in refurbishing the property, as well as negotiating a new back-to-back letting at a rental of £195,000 p.a.,” adds Paul Foster. "On purchase, we spent a great deal of time with investors and the management looking at the financials of the business and its future. At that time, the business was coming out of a very difficult recession, but our investors backed the business and that judgement call proved well-founded. We’ve managed to provide an excellent return on this property, and this is yet another successful transaction to add to our burgeoning list.”