The office’s future looks secure after £10m. Sales
Bordage House on Le Bordage was bought for £3,865,000. Sold on behalf of Craigard by Watts Property Consultants, the four-storey office building is leased to Fort Management Services, TPA and Butterfield Bank.
“The building was our first syndicated commercial property investment acquisition in Guernsey and it has done well,” said Paul Foster of Craigard. “The reception and car park have been renovated and improved and rental income has been increased. Our investors have seen an 11.5% annual return without excessive risk exposure.
Savills acted for the anonymous buyer on both transactions, the second being St George’s Place on the Esplanade – often known as the Piette complex. The mixed warehouse and office complex, leased to various tenants, was not openly marketed and was purchased for the client by Terry Gardiner of Savills Commercial. The purchase price was £6,989,000.
Tony Rowbotham, commercial sales manager for Savills in the Channel Islands, said he was delighted to complete the transaction on the last working day of 2021. “The sales proved that Guernsey remains attractive as a place to do business and invest capital.”
Carey Olsen undertook legal due diligence on the buyer’s behalf and Savills was appointed property manager for both properties.
Another transaction that took place at the end of 2021 was the sale of No 1, The Plaza by Watts Property Consultants. Although the sale price was not disclosed, the new 30,000sq. The 125 m² office building was sold after the practical completion of the owner’s work by the developer Comprop, Bank Julius Baer having signed a lease for the three upper floors.
The Grade A building has a BREEAM sustainability benchmark rating of ‘very good’, representing another milestone for Guernsey in a climate where the need to meet environmental, social and governance criteria is becoming increasingly prevalent. .
“In what has been an environment of relative uncertainty, due to the increase in working from home, these sales [Bordage House and No 1 The Plaza] sending positive signs to the market as a whole and signaling that investor sentiment is not at all concerned about the long-term future of offices in Guernsey,” said Wing Lai, director of Watts Property.
“With a continued pipeline for 2022, early indications are that this year will be as positive as the last.”