Following quickly after the recent purchases of Dartford & MCS, Craigard has identified and made another acquisition in the shape of a detached office building situated on the outskirts of Runcorn on the established Daresbury Court.
The purchase price reflects a net initial yield of 19.90% or £75 per sq. ft. inclusive of costs. This is significantly less than build cost and an incredibly attractive yield. The property itself, purchased on a freehold interest for £2,750,000, is fully let Atos IT Services UK Limited. Atos is the world’s third largest managed IT security services provider. The building is a detached headquarters office building of 38,960 sq ft with floor plates of c 13,000 sq ft over three storeys. It’s accompanied by 252 parking spaces (1:154 sq ft), with the entire site totalling 2.07 acres.
“Atos’ current lease (a passing rent of £579,750 per annum, £14.88 per sq. ft) expires in March 2023,” adds David Foster of Craigard. “This is a similar story to our recent purchase in Dartford. The business plan is to try and keep the tenant post lease expiry, and agree a new lease with Atos. The attractive entry price here allows us to be flexible with what we can offer the tenant to entice them to stay. We saw a fantastic opportunity here as offices are clearly out of favour at present due to the covid pandemic, but we are of the mindset that people will return to the office. Therefore, assuming we can agree a renewal with the tenant, there should be a good outturn with this asset.”