Lothbury Investment Management (LIM) has just completed the purchase off-market of a prime multi-let office building in Bristol’s Victoria Street at a price of £29.45 million (approx. €35.4 million), reflecting a net initial yield of 5.93%. The vendors are Invesco Real Estate UK III Fund.
The Paragon has been described as the ‘very best’ office space in the heart of Bristol’s vibrant business district. The building is situated in a prominent position on Victoria Street, which links the city centre and Bristol Temple Meads railway station, just east of Bristol’s floating harbour. It sits opposite the Finzels Reach mixed use development.
The Paragon was completed in 2009 to BREEAM ‘Excellent’ rating so offers the very best specification for Grade A office accommodation. The building comprises 68,489 ft² (6,363 m²) of offices and 6,909 ft² (642 m²) of retail accommodation on the ground floor.
The office space at the Paragon is fully let to strong tenants, with the ground and first floors let to Mercer Ltd, second and third floor offices to Ernst & Young LLP and top two floors let to solicitors Thrings LLP.
The retail units are let to Tesco Stores and coffee shop, Friska. The third unit of 1,710 ft² has just been let to delicatessen Rennies Good Food. The space is let at between £20.00 and £27.50 per square foot and returns a total rental income in excess of £1.8 million.
Mike Toft, fund manager and director at Lothbury Investment Management, said: “This is a superb purchase of a highly prestigious office building in arguably the best location in Bristol. The area has seen significant high quality development over the last decade. This is a core, long term holding that will enable us to capitalise on the market recovery. The Paragon commands leading rents in the market and is an excellent asset for capturing rental growth.”
Tudor Toone acted for Lothbury Investment Management and Hartnell Taylor Cook acted for the vendors.