Value Add Project

Cardinal Square

Derby

The freehold was acquired of Eastgate House in November 2000 for £2.0m, with only 31,000 sq ft of a total 113,000 sq ft occupied. Having taken a surrender of this lease for a reverse premium of £1.1m the building had been acquired effectively vacant for £900k or £8.00 psf. Built in the 1970’s, an initial £3.0m was spent on refurbishing the two reception areas, various office floors and relandscaping the central courtyard, around which four blocks were arranged. The building was renamed Cardinal Square and quickly became c.50% let. The property has been a core holding since and we have consistently refurbished and let new space. The NHS currently occupies c.60,000 sq ft and our own serviced office operation, Flexibase, occupies 2 floors totaling c.10,000 sq ft. The building is currently 73% let and produces an annual rental surplus of c.£525,000. The running yields is c.9.50% pa.