Eagle Point - Segensworth
Craigard Investments, leading a syndicate of private investors has acquired Eagle Point at Junction 9 of the M27 at Segensworth for a price of £3.08 million.
The building was constructed about eight years ago and comprises a grade ‘A’ office building totalling just under 30,000 sq ft. The price represents just over £100 per sq ft – less than the cost of the bricks and mortar.
The building is approximately 70 per cent let to two tenants – The Skills Funding Agency (previously Learning Skills Council) and Geest Line – a private shipping company. Income totals £315500 per annum rising with stepped increases to £345500 in March 2014.
The building has two vacant suites on the ground and first floor totalling 8600 sq ft approximately which Craigard will now seek to let giving rise to potential reversionary yield of over 13%.
Commenting on this latest acquisition through its syndications structure managing partner of Craigard Paul Foster commented ‘We are delighted to secure this latest acquisition – our largest yet through a syndication structure with £1.5 million of equity raised including our own stake. This is a landmark building, acquired for less than the cost to build it so the land effectively comes for free. It offers investors an exciting reversionary yield and good capital value uplift if we can secure the elusive tenants in this difficult market.’
Lambert Smith Hampton have been instructed as sole letting agents.