PROMPT (Provincial & Regional Office Market Property Trust), the €148 million office investment fund established by Catalyst Capital LLP, JER Partners and The Royal Bank of Scotland, has purchased Spectrum, the landmark office building in Bristol, for €28,465,000 from Prudential Assurance representing a net initial yield of circa 7%.
The deal marks the successful conclusion of acquisitions by PROMPT, which has previously acquired Ship Canal House in Manchester, Cathedral Square in Newcastle, Pacific House in Glasgow, and Friars Gate in Solihull, along with a building on Bartley Wood Business Park in Hampshire.
Spectrum is situated directly opposite the Broadmead Shopping Centre redevelopment at the base of the M32, forming part of the gateway to the city. It is a highly visible, multi-let, office building developed in 1986 and comprises 114,126 sq.ft. of office space over 6 floors fronting Bond Street. Bristol City Council has a long leasehold within the building and other key tenants include AXA Insurance, Halifax Plc, BUPA and First Secretary of State.
Julian Perry, Portfolio Manager at Catalyst Capital LLP, commented:
'The property represents an opportunity to add value through rebranding and reletting and we will be bringing refurbishment space to the market soon. The property will benefit from the redevelopment of the Broadmead Centre opposite.'
Guy Wilson, Director of Acquisitions at Catalyst Capital LLP, commented:
'We have been tracking this property for a while and are delighted to have secured it for PROMPT. It is a good deal with which to conclude our acquisition activity for the Trust. '
Alastair Bell, Director of JER Partners, commented:
"The acquisition in Bristol marks a successful conclusion to the PROMPT initiative which has now delivered investments in six regional locations across the UK. During this time, we have developed a very close and fruitful working partnership with both Catalyst and RBS. We look forward to working on future opportunities with both organisations, as and when they occur, both here in the UK and in Continental Europe."
Knight Frank acted for PROMPT and Alder King for the vendors.
Source: Catalyst Capital LLP, JER Partners