Having identified the continuing strength of Bristol’s occupational market, a lack of available Grade A office space and a constrained development pipeline, we acquired the property off market in August 2017 for £23.2 million.
On purchase the property was let to four occupiers at an average passing rent of only £19.65 per sq ft. There was a further 25,400 sq ft of vacant space, providing the opportunity to add value through letting and thereby establishing higher rents within the building.
As anticipated, we quickly completed new leases for a combined 19,100 sq ft, with the fourth floor let to Integreon, a business support company, and the fifth floor let to the advertising agency, McCann.
The lettings were for a combined annual rent of £0.54 million, equivalent to £28.50 per sq ft, 4% ahead of the ERV on purchase. Only one small suite now remains available.
As at March 2018 the property has seen a 15% uplift in valuation since acquisition.