Craigard close the year with a deal double.
Craigard have successfully purchased two further investments to close out a bumper 2013 - six new acquisitions have been secured.
In Hampshire they have acquired Systems House on Petersfield Industrial Estate, a 20,000 sq.ft two storey research and development building constructed around 2000. The freehold has been acquired by a Craigard Syndicate for £1.56 million.
Simultaneously with the purchase Craigard has entered into a letting to Moneybarn plc, a boutique car finance house currently located at Nyewood just to the east of Petersfield. Moneybarn are in a rapid growth phase and have outgrown their current accommodation.
The Lease is at a rent of £195K for a term of 12 years with a tenant break at year seven on payment of six month rent penalty. As part of the deal the building will be refurbished and upgraded to a pure office specification with the tenant having plans for some interesting personalised twists to the accommodation!
Commenting on the acquisition Paul Foster Managing Partner of Craigard Investments said ‘We are delighted with this piece of business. We have just exited the Meyer Timber Building at Chippenham while simultaneously making this acquisition with Moneybarn. There are considerable similarities between the two deals in that in both instances we have worked with an occupier to secure a vacant building on a win win basis. Moneybarn will have a bespoke building which will be refurbished to their exact requirements and we have a sound investment with real potential for future capital growth as the company expands into the space created.’
LSH acted for Craigard and Wadham and Isherwood for the Receiver vendor
At the same time Craigard have pounced on an opportunist deal “up north” in Darlington. Three retail units have been acquired directly opposite Marks & Spencer and BHS. The units are let to McDonalds, YMCA and British Heart Foundation. Total income is £142k with scope for enhancement.
Commenting on the opportunity, Paul Foster, said ‘Darlington was not a location that was high on our hit list but this property failed to sale at auction and Molyneux Rose our agents have been involved with it for many years. They tipped us off to buy in at £1.05 million - a very compelling price representing 12.75% initial yield and with some reasonably solid leases to McDonalds and BHF both of who are good covenants. Darlington is the fifth largest retail centre in the North East and on my visit was incredibly busy despite a very wet cold Saturday morning. We have already got discussions going with the existing tenants to restructure the leases and it’s looking like we will have some good news to announce early in the New Year!”