Ærium, the European real estate fund manager, announces the acquisition of One Glass Wharf, Temple Quay Central, Bristol, from administrators PWC for £83 million (approx. 96.7 million). The purchase price represents a net initial yield of 6.84%.
Completed in 2010, One Glass Wharf provides 20,083 m² of new flexible grade-A office space across five floors together with 115 secure basement car parking spaces. Situated in Temple Quay, Bristol's central business district, overlooking its historic waterside and opposite Temple Meads train station, it offers prime headquarters office space.
The asset is 81% let to law firm Burges Salmon on four new FRI leases for 20 years. The remaining vacant space is subject to a sellers guarantee in excess of five years. Ærium has instructed agents DTZ and Alder King to seek occupiers for the remaining space.
The property was originally developed by Castlemore Securities, who went into receivership in early 2010.
Commenting, Franck Ruimy, CEO of ÆRIUM, said: "We are very pleased to have announced the acquisition of this prestigious property in partnership with our capital investors from the Middle East. This is a significant purchase outside of the Central London market of a very high quality, trophy asset. All core UK business markets are beginning to show a reduction in the supply of prime stock coming onto the market, which will further supports the underlying demand for space in this type of asset and therefore steady rents going forward.
"Throughout the last decade and during the recent turbulent times, Ærium has continued to develop and strengthen its relationships with G.C.C.-based capital providers. The current UK and European asset markets offer tremendous opportunities on a risk reward basis for international investors. We look forward to announcing further transactions in both the UK and continental European markets, in partnership with our capital providers from the Middle East with whom we have built key relationships."
CBRE acted for Ærium. King Sturge and Alder King advised PWC.