Aviva Investors has acquired the first phase of Abstract Securities’ redevelopment of Bristol Business Park for €33.4m (£30.06m) via the Lime Property Fund.
The property will be redeveloped into an 85,790 ft² modern office building, which has been pre-let in its entirety to Babcock Integrated Technology, the UK’s leading engineering support services company, with a guarantee from Babcock International.
The office building will be built to a BREEAM ‘Excellent’ specification and is scheduled for delivery in May 2019. The property will provide a prominent gateway office building on Bristol Business Park, Bristol’s premiere of out-of-town Business Park, which is in close proximity to the University of the West of England and the Ministry of Defence’s principal UK procurement centre at Abbey Wood.
Babcock has agreed on a 15-year full repairing lease at a commencing rent of approximately €1.78m (£1.6m) per annum, subject to five yearly rent reviews linked to RPI, collared and capped at two per cent and four per cent per annum.
Kris McPhail, Assistant Fund Manager, Aviva Investors, said: “We are very pleased to be working with Abstract on this opportunity. Abstract has a long track record of delivering high-quality office accommodation for corporates. This transaction provides our institutional clients with an inflation-linked cashflow from a strong tenant and a property that is well located and strategically important to the tenant. These are exactly the type of investments we are actively targeting for the Lime Property Fund.”
Mark Glatman, Chief Executive of the Abstract Group, said: “This transaction is a great testimony to the commitment of all parties. Our Architects, Keppie Design, have done an excellent job on the planning and South Gloucestershire Council have been extremely supportive of this proposed development. This building in Bristol represents the third office building Abstract has undertaken for Babcock over the last 3 years and the efficiencies of procurement and consistency of design have enabled Babcock to benefit from an extremely low rent level for this new building. The process of forward funding was only initiated at the beginning of August and Aviva concluded their commitment within a month of agreeing Heads of Terms.”
Lambert Smith Hampton represented Abstract on the investment sale and DTRE represented Aviva Investors. Addleshaw Goddard advised Aviva and Pinsent Masons acted for Abstract Securities.
