Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, has completed the acquisition of 10 Templeback in Bristol city centre for £58.5 million. The asset was acquired on behalf of St James’s Place from Benson Elliot.
The newly-developed waterfront building, completed in 2008, comprises 124,198 sq ft of Grade A office accommodation spread across six floors, centrally located in Bristol’s main business district. The bright and modern asset has been finished to the highest standards, achieving an ‘excellent’ rating by the BREEAM environmental assessment method for its sustainable design. Tenants can enjoy the use of a range of amenities, such as bike storage, car parking and showering facilities, with excellent transport links at the building’s doorstep in addition to the region’s premier shopping centre, Cabot Circus.
10 Templeback is multi-let to a range of tenants including NFU, ADP, Momentum Financial Technology, Colliers International and Mott Macdonald for a combined passing rent of £3.3 million per annum, with 41,629 sq ft of space currently vacant.
Barney Rowe, Partnerat Orchard Street, commented:
“We are pleased to have secured this highly liquid, prime office asset in one of the UK’s strongest regional cities. It benefits from excellent fundamentals and a prominent position in the heart of Bristol’s main office core. A combination of the strong covenant strength on the existing income and the severe supply and demand imbalance in the Bristol occupational market provide real opportunities for both rental and capital growth.”
Marc Mogull, Managing Partner at Benson Elliot, added:
“We have successfully marketed a number of our mature UK regional assets in BEREP II during the past 12 months, and have also had unsolicited approaches on our BEREP III portfolio, reflecting the strong appetite amongst investors for institutional quality properties like Templeback. The returns we have secured from these seven investments support our conviction to be an early mover into the regions, and underscore the success we have had in implementing our value-add programmes. The disposal brings Benson Elliot’s total proceeds from seven UK exits during the past 12 months to over £275 million. "
Orchard Street was advised by Savills. Benson Elliot was advised by Farmer Capital.
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Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.