Craigard buys fourth deal of 2014
Craigard is going west with its latest acquisition as it acquires a prime warehouse building in Cardiff Bay in a £1.65million deal.
The building, approximately one half mile south of Cardiff City Centre, extends to c.30000 sq.ft and was constructed about eight years ago. The passing rent is £181500 so the net initial yield is 10.4%. Capital value per square foot, including purchase costs, is just over £55 per sq.ft – significantly less than new build cost.
The site is currently let to Henry Schein UK Holdings Ltd, the UK subsidiary of Fortune 500 and Nasdaq 100 listed global company Henry Schein Incorporated. Henry Schein employs nearly 16000 people, serves nearly 800,000 thousand customers worldwide, and Henry Schein UK Holdings Ltd has a Dun and Brad Street Rating of 5A1. The lease is due to expire in April 2016.
Managing Partner of Craigard Investments LLP, Paul Foster, commented: "This is a top quality warehouse, well located with good access to the motorway network and the City Centre. There is a good yard area and it is a very well specified building. In time, we obviously need to have conversations with Henry Schein about the Lease renewal but we very much hope to be able to persuade them to stay in a unit that seems to work well for them. If they do decide to re-locate, we have a very good quality building to offer to the occupational market where the dynamics are a decreasing supply alongside an increasing demand."
Savills acted for the vendor.