Carlyle Skelton Development Group ("CSDG"), the £750m joint venture between The Carlyle Group and Skelton Development, has announced that it has exchanged contracts to acquire an 110,000 ft² office building in Bristol for approximately €30 million (£21.3 million). Carlyle Skelton acquired the building from Resthaven Properties Limited, which is part of the Topland Group.
Located between the Temple Meads Railway station and the Broadmead Shopping Centre, the 1970's office block occupies a substantial 1.2 acre site in the heart of Bristol's prime office district.
Known as Temple Way House, the office block is currently occupied by Clerical Medical, although the insurer is relocating shortly to a nearby Topland development at Harbourside.
Once vacant, CSDG intends to redevelop the existing building to create a 200,000 ft² modern Grade A office space over nine floors with parking for 120 cars. Work on the development could get underway as early as next spring, once planning consent has been secured.
Duncan Moss, Chairman of CSDG, said: "Bristol is an exciting city in which to invest. There is a strong office market but one which is extremely demanding and we believe the proposed redevelopment of Temple Way House will provide the quality space which local occupiers are seeking."
This is CSDG's fifth investment and brings the overall development value of its portfolio to ˆ350 million. Other investments include an office building in Waterloo, with potential to be redeveloped into a hotel, an office redevelopment in Mayfair, and a retail and residential development in Poole.
Robert Hodges, The Carlyle Group's Managing Director, commented: "We are very satisfied with the performance of this joint venture vehicle and delighted that we have invested in five projects with significant growth opportunities so rapidly. We continue to believe there are tremendous investment and development opportunities across the UK."
CSDG was launched in March 2006 as a joint venture between Carlyle and Skelton Development Group. It is focused on identifying investment and development opportunities within the UK but across a broad range of property sectors including residential.
CSDG was advised by Lambert Smith Hampton while King Sturge represented Topland.