Purchased In: December 2019
Prime Industrial Redevelopment Play

Cost Of


The site was purchased as a 1980’s vacant 50,000 sq. ft. industrial warehouse on a site of 2.75 acres in a prominent location in Huntingdon. The decision was made that the unit wasn't fit for purpose or the best use of the site, so in mid 2020 it was demolished leaving a clean and cleared site ready for redevelopment.

There was a severe lack of good quality supply and strong demand in Huntingdon at the time. There had also been no new development in Huntingdon for around twenty years, so the potential for new modern units was huge. At the same time as demolition, planning was sought from the council to construct two new industrial units totalling 55,000 sq ft.

In early 2021 a tender process took place to procure a construction company to build the units, with a cost attached of approximately £4.1m.

Unfortunately, delays in the planning application process meant construction couldn’t begin when expected, resulting in a significant increase in costs due to inflationary pressures and covid. By the time planning was granted and construction began in Autumn 2021, the cost had increased to £4.8m.

Construction lasted nine months. In that time, Craigard successfully managed to let the larger 44,000 sq.ft. unit prior to completion to Paragraf Limited – a young company involved with R&D in the new and emerging market of graphene. This cemented the original decision to build the new units. The letting set a new record prime rent for Huntingdon of £9.75 psf.

The smaller unit was sold to an owner occupier within six months of completion – the flexibility of offering the units for let or for sale was crucial in securing the disposal of this unit. Again there was a complete lack of new quality units available for occupiers to buy.

The large unit is currently being held for income whilst interest rates remain high with the intention to sell once the market improves.

Despite all of the bumps along the way, this site is still on track to produce a profitable exit for investors, showing our expertise in navigating complex projects and unexpected difficulties.

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