The local commercial property market has once again shown its resilience and attractiveness with the recent sale of St Julian’s Court. Watts Property Consultants acted on behalf of the Vendor to manage the eight-figure sale.
The prime pitch Grade A property, situated in the heart of St Peter Port’s financial district, was sold earlier this month for £13,785,000. This reflected a net initial yield of 7.00% and was well in excess of the guide price of £13,220,000. Watts acted alongside National Agents, JLL, as Joint Selling Agents, with other bidders also offering undisclosed sums.
The new owner is an investor group led by Craigard, a family business, formed in 2005 and is now managing and co-invested in a £65m portfolio of commercial property. Historically operating in the southern half of England over the last three of years it has acquired other Guernsey long income assets which tend to offer a yield advantage over their UK equivalent.
St Julian’s Court comprises 34,500 sq ft and is leased by SG Kleinwort Hambros and Rothschild & Co and offers 8.4 years of unbroken income. Following the sales of Carey House and Valley House earlier this year, this is the third significant office deal of 2020.
Joanna Watts, Managing Director of Watts Property Consultants, who also acted in the acquisition of Carey House, said: “This deal is of huge significance to Guernsey, as it underlines further the flight for safety in a very difficult global environment. It is therefore a genuine testament to the role the Island plays as a secure and stable jurisdiction within which to do business.
“The fact that the property attracted such positive bids demonstrates confidence in the local market and the attractiveness of good-quality, long-income assets. This is encouraging for the year ahead”.
Paul Foster for Craigard said: “We’re so pleased to welcome St Julian’s Court to our local portfolio. We have been steadily building our presence in Guernsey over the last three years and this purchase underpins our focus on acquiring more properties across the Bailiwick”.
Advocate John Le Tissier of Carey Olsen was the legal representatives for the Vendor, with the Purchaser being represented by Advocate Alastair Hargreaves of Ferbrache & Farrell.