Craigard

Imperial House

14,000 sq ft of office accommodation with allocated parking

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currently running
a yield of

10%

Overview

Located in an established city centre office area, Imperial House is a modern four storey office building totalling 13,245 sq ft and a secure ground floor car park.

Bought out of a Receivership, the receivers had cosmetically refurbished the building when a major tenant had vacated but lacked sufficient cash to deal with the more comprehensive work that was needed to the mechanical and electrical installations.

Craigard bought the building with a business plan to conclude all the necessary works at a cost of about £400,000 and indeed, let three of the four vacant floors within six months of practical completion of the works.

Since then, the Covid 19 pandemic unfortunately impacted on two of the tenants, one of which went into administration and the other closed the subject office, albeit were still under lease. This was obviously a frustrating step back.

In early 2021, CEG won a contract on behalf of Southampton University to teach additional language classes, and picked Imperial House as their building of choice. They wanted all the vacant space including the suite of the office that had been closed by Verastar so Craigard negotiated a surrender with them to allow CEG occupation. This resulted in the building being fully let.

Although fully let there are break clauses in year three. However CEG have options to occupy the whole building. After a short marketing exercise to establish if there was a really strong market price achievable reflecting this our investor group decided to hold the asset for the medium term and it has accordingly been refinanced out to 2024. The building is now in excellent condition and very well positioned for rental growth.

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