Craigard Sale in West Country Nets a Tidy Profit for Investors
Commercial property specialist Craigard has sold the Trelleborg Unit at Bridgwater for £2.82million representing a 7.5% initial yield.
Purchased in 2015 for £1.965million, the sale sees a tidy profit for the syndicate investors behind this development. The unit has been sold to South Somerset District Council and benefits from a recently negotiated increased rental and lease extension until 2022 with its current tenant Trelleborg Sealing Solutions UK Ltd.
“Since we purchased this property, our hands-on asset management has helped lead to a profitable deal," comments Paul Foster. "Alongside increasing the passing rent we also conceived a medium term project to extend the building by about 25% and reconfigure the building into smaller units. Trelleborg is outgrowing the space and will probably relocate in time but the scope to extend and subdivide it offers an interesting medium term opportunity to create a more valuable multi let asset which makes better use of the sites prominent road frontage. However that involves a lot more capital investment and following our last rental negotiation aligned to yield shift investors decided now was the right time to crystallise their profits. It’s been another fantastic example of attentive asset management aligned with good timing.”
The site covers an area of 3.3 acres and consists of a 36,050 sq ft industrial building with potential to extend the site to just under 50,000sq ft. Passing rent was £225330 per annum.
Kimmre acted for Craigard and Alder King for South Somerset.