Craigard

Cornbrash Park

Purchased: October 2019
Refurbished Offices: 1,330 sq ft - 9,633 sq ft

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Over nine months, new tenant identified
and lease completed, all during a pandemic

9 months

Overview

This ‘unique’ asset comprised four office buildings and three warehouse units and was acquired from a large institution for c.£3m. The business plan/basic opportunity encompassed a number of classic asset management initiatives including the potential to extend the headlease with the Local Authority Freeholder beyond the current 94 years unexpired.

Whilst the offices, when looked at in isolation, presented a moderate to higher risk proposition with two of the tenants known to be vacating within the following 12 months after purchase, the industrial component was let and presented well; a suitable investment that would in our view generate good interest in the market amongst private investors if available separately; this was an avenue that was not explored by the vendor.

Since taking ownership, Craigard has worked hard to reposition the estate in the market by modernising it, improving the overall management of the Estate and rebranding it

Furthermore, once Siemens, who occupied one of the offices and whom we knew would be moving out within a few months of purchase, vacated at lease expiry, a full refurbishment of the building was undertaken, a new tenant identified and lease completed all within a period of nine months and during a pandemic – this was a great result for the investors and proved that by bringing good quality stock to market in Chippenham will attract tenants.

Status update: Craigard successfully agreed an extension of the headlease to a new 150 year lease and brought forward to market the industrial element of the scheme. The asking price was set at £1.64m and following competitive bidding we sold a long leasehold interest to a high net worth family property company for £1.91m reflecting a NIY of 5.15%; a level that was well ahead of the business plan.

We continue to implement a refurbishment of the vacant office space (3a – f) and have successfully agreed terms to sell one of the units to an owner occupier.

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