F&C Commercial Property Trust has acquired One Cathedral Square in Bristol for £33.5m from Castleforge Partners – a yield of 5%.
Located in Bristol’s business district between College Green and Harbourside, the 56,059 sq ft prime office building was refurbished in September and is fully let to the University of Bristol and Dyson Technology.
It has a WAULT of 12.4 years to expiry and 7.6 years to break, and generates rental income of £1.8m per year.
Richard Kirby, fund manager for F&C CPT, said: “This acquisition complements the portfolio’s existing holdings and provides secure income that is backed by solid financial covenants, while also delivering an attractive yield.
“With current supplies of Grade A office space in Bristol at an all-time low and the city increasing in appeal to a broad range of commercial occupiers, we have confidence in the fundamentals supporting our ability to deliver both capital and income growth on behalf of our shareholders from this investment.”
Richard Coombs, director of national capital markets at Colliers International, said: “The Bristol office market is going from strength to strength and the sale of One Cathedral Square was not only one of the biggest deals of the year, but it was also carried out in just 11 working days following a very competitive bidding process.
“This is a reflection of the strong appetite we are seeing for quality office stock in the city and the value placed on high quality refurbishments and tenants.”
CBRE advised F&C CPT and Colliers International advised Castleforge.
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