Castleforge Partners has completed on the sale of their long leasehold interest in One Cathedral Square, Trinity Street, Bristol to F&C Commercial Property Trust Limited for £33.5 million, reflecting a Net Initial Yield of 5 per cent.
Colliers International acted on behalf of the vendor. CBRE advised the purchaser.
The 56,000 sq ft, three-storey Grade A office is situated between Bristol’s historic College Green and the prime, mixed-use Harbourside area. The building has very recently benefitted from a £7 million refurbishment, which included a new front façade and complete replacement of the property’s M&E.
The property is fully let to the University of Bristol and Dyson Technology Ltd. In November 2017, One Cathedral Square set a record rent for Grade A office accommodation in Bristol, with Dyson Technology Ltd agreeing £32.50 per sq ft on their 28,720 sq ft letting.
Anthony Maxwell-Jones, director at Castleforge Partners said; “We purchased One Cathedral Square two years ago with a view to add value by undertaking a significant refurbishment that would appeal to a high quality occupier-base such as Dyson and Bristol University. The sale to BMO marks an end to this successful project and our business plan.”
Richard Coombs, director, national capital markets at Colliers International said; “The Bristol office market is going from strength to strength and the sale of One Cathedral Square was not only one of the biggest deals of the year, but it was also carried out in just 11 working days following a very competitive bidding process. This is a reflection of the strong appetite we are seeing for quality office stock in the city and the value placed on high quality refurbishments and tenants.”
Daniel Plummer, Head of Offices at BMO (Asset managers for F&C Commercial Property Trust) said; “ This acquisition complements the portfolio’s existing holdings and provides secure income that is backed by solid financial covenants, while also delivering an attractive yield. With current supplies of Grade A office space in Bristol at an all-time low and the city increasing in appeal to a broad range of commercial occupiers, we have confidence in the fundamentals supporting our ability to deliver both capital and income growth on behalf of our shareholders from this investment.”
