December marked a very encouraging conclusion to 2021 for the Guernsey Office Investment Market, with Watts Property Consultants securing sales for both Bordage House and No 1 The Plaza, Admiral Park.
Over the last twelve months, the Channel Island Market has been characterised by a very limited amount of good quality investment stock and with a weight of cash looking for a home, both products achieved positive returns for Watts Property’s clients.
Sold on behalf of Craigard, Bordage House achieved a price of £3,865,000, reflecting a sub 8.00% yield. The asset comprised 12,300 sq ft of accommodation and was fully let to tenants including Butterfield Bank, Fort Group, TPA and ZKF.
Paul Foster of Craigard said: “The building was our first syndicated commercial property investment acquisition on Guernsey and it has performed well. The reception and car park have been refurbished and improved and rental income has been increased. Our investors have seen an annual return of 11.5% without undue exposure to risk.”
Whilst the sale price for No 1 The Plaza has not been disclosed, the new 30,000 sq ft office building was sold following practical completion of the Landlord’s works by Developer, Comprop, as well as Bank Julius Baer signing their lease for the upper three floors. Bank Julius Baer is intending to relocate to their new headquarters in the next couple of months. This Grade A building has a BREEAM benchmark rating “very good” and heralds another milestone for Guernsey in a climate where the need to satisfy ESG Criteria is becoming ever more prevalent.
Director of Watts Property, Wing Lai said, “In what has been an environment of relative uncertainty, due to the increase in working from home, these sales send positive signs to the market as a whole and signals that investor sentiment is not at all concerned about the long-term future of Guernsey offices. With a continued pipeline for 2022, early indications are that this year will be as positive as the last.”
