Acting on behalf of Craigard Investments, Lambert Smith Hampton (LSH) has successfully negotiated the sale of Eagle Point, Segensworth, to Threadneedle Property Investments.
Craigard Investments acquired the 30,000 sq ft office building on the Segensworth roundabout at the end of January 2013 and has carried out a successful active management campaign including refurbishing the vacant office space, resolving various building issues and upgrading the reception which has resulted in two successful lettings and the subsequent sale.
This follows on from other recent success that Craigard Investments has had locally for its investors, particularly on the M27 office market, following its letting at Spectrum of 10,000 sq ft to Mite.
Eagle Point, located just off Junction 9, M27 at Segensworth, was developed in 2004 following a pre-let of 50% of the building to the Learning Skills Council. The other tenants are Geest, Lorne Stewart and Portland Financial Services.
Paul Foster of Craigard Investments, said: “We felt at the time, when we acquired Eagle Point, that we were taking on some risk with the voids available in the building, but were confident in the ability of our active management skills to help attract tenants and with the help of Lambert Smith Hampton’s occupational office team, we were able to let two vacant floors within nine months of acquiring the building.
“Following the final let of the building we were approached by Threadneedle, who had been tracking the building for a while and noted its success. We therefore engaged in off-market negotiations via our investment agents, Lambert Smith Hampton, and a deal was agreed at a price of £4.7m, reflecting a NIY of circa 7.07%. rising to 9.06% in 2017 upon receipt of all stepped rents.”
The deal highlights the improvement in the investment market, not only nationally but in the South East.
Jerry Vigus, Director of Capital Markets at Lambert Smith Hampton, said: “We were pleased to advise Craigard Investments on what has been a very successful project both for our occupation team who have worked hard in securing two lettings in quick succession, but also securing favourable terms with regards to the sale for Craigard to Threadneedle. The transaction follows on from the recent success the team has had transacting over £25m during August and September and we are hoping to have a good end to the year with a further £30m in solicitor’s hands”.
Threadneedle Property Investments were advised by Whitmarsh Holt Young based in London.
