Opportunity to acquire a Landmark ‘Big Six’ regional office investment in Bristol city Centre. Prominently situated at Temple Quay less than 50m from Bristol Temple Meads railway station. The building provides 35,477 sq ft of Grade A office accommodation arranged over ground and three upper floors and 13,272 sq ft of retail/leisure on the ground floor. The total is 48,749 sq ft. A highly reversionary rent of £919,084.73 pa reflecting an average rent of £32.29 psf on the offices, a significant discount to Bristol prime rents of £55 psf. Reversionary income of £1,621,894.73 pa on letting the vacant space at £45 psf. Multi let to 12 tenants with approximately 84% of the income when fully let secured against the offices and 16% against the retail. Offering a WAULT of 4.4 years and 2 years to break clauses. Asset management opportunities include the letting of the vacant part first and third floors and improve the buildings sustainability credentials to create one of Bristol’s best repositioned mixed use assets. Bristol has low grade A availability (2.3%) and limited development pipeline which has resulted in significant rental growth. Prime rent in Bristol have grown 45% from £38 psf in 2020 to £55 psf in 2026. 44 car parking spaces, providing an excellent city centre car parking ratio of 1:844 sq ft based on the office area.
Additional Information
Sales process
We are instructed to seek offers in excess of £12.3m subject to Contract and exclusive of VAT. A purchase at this level would reflect an initial yield of 7% with a reversionary yield of 12.5% on letting the vacant space at £45 psf. This reflects a low capital value of £252 psf after allowing for purchaser’s costs of 6.71%.
Development opportunity
Refurbish and let the 3rd floor which will drive rental growth. Improve retail/leisure mix as the location improves.
Overview of the tenants
Multi let to 12 tenants with 84% of the income from offices and 16% from retail.
Other relevant information
Redevelopment of Temple Quarter and Temple Meads station opposite will boost Temple Quay footfall. The property is elected for VAT. It is anticipated that the sale will be treated by way of a going concern. (TOGC)
