Craigard make it three buys in a month!
Craigard have completed the Purchase of Eskan Court in Milton Keynes – their third acquisition this month.
Eskan Court is a multi-let office building constructed in about the year 2000 with tenants including Konica Minolta, Isotrak Ltd and Paribis Law. Total rent receivable is £387925 pa and against a purchase price of £3.025 million this provides an initial yield of just over 12%. Capital value per sq.ft. on the 24762 sq.ft building amounts to just under £130 per sq.ft – about the cost of the bricks and mortar on the site.
Commenting on this acquisition Paul Foster Managing Partner of Craigard Investments stated “This continues our usual strategy in the current market – buying into decent quality buildings at or around build cost. All of the tenant leases here are relatively short but all the tenants are in occupation and seem to like the building. We have every opportunity therefore to work with the tenants to re-gear existing leases and produce a more robust income stream for the future. It may even be possible to construct a modest extension”