The Capital Markets team at the Bristol office of commercial property consultants Knight Frank has acquired 66 Queen Square on behalf of Aviva Investors Property Trust for £32.7m.
The property comprises 61,497 sq ft of grade A office space, combining a new five-storey building integrated with a fully modernised and refurbished grade II listed Georgian terrace building. The building is developed and built by Skanska UK, with construction due to complete in October 2015.
The scheme is 90% pre-let and has achieved record headline rents for the city, reaching £28.50 per sq ft. KPMG has agreed a 15-year term and Handelsbanken has agreed a 10-year term, both without tenant breaks.
Nick Thurston, associate at Knight Frank, said: “We are very pleased to continue our relationship with Aviva Investors by securing this deal, which highlights the strength of the Bristol office market.
“Prime multi-let assets are in high demand from both UK and overseas investors, particularly those buildings located in major regional cities where Grade A supply is tight, there are good transport links and there is little anticipated landlord capital expenditure in the short to medium term.
“The lack of buying opportunities combined with the weight of money looking to invest in the regions has resulted in yield compression for ‘best in class’ assets across the UK.”
Knight Frank acted on behalf of Aviva Investors. JLL and Alder King acted on behalf of the vendor Skanska.
