Three office buildings in Bristol’s Temple Quarter have been sold to L&G for £27.75m.
Quayside, which comprises DAS House, North Quay House and South Quay House have been sold by DAS and ERGO, represented by the Bristol office of Cushman & Wakefield. Knight Frank’s Bristol office acted on behalf of Legal & General Investment Management.
Quayside comprises three highly prominent buildings located within the heart of Bristol’s central business district and the Temple Quarter, providing 96,347 sq ft of lettable office accommodation in a waterfront location.
The principle tenants are DAS Insurance, DAS Legal and Unite Integrated Solutions which account for 93% of the income. The current passing rental income is £1,833,781 per annum.
The freehold sale and continued leasehold occupation by DAS has been concluded as part of the long term strategy of the business.
Nick Allan, International Partner and Head of Capital Markets at Cushman & Wakefield in Bristol commented: “We are delighted to have secured the agreed exit strategy of Quayside Bristol on behalf of our clients DAS and ERGO. The property attracted an unprecedented amount of interest for an asset of this scale with over thirty investors expressing interest. This underlines the attraction of Bristol from UK and International capital for active management opportunities, which has largely driven by the imbalance between tenant demand and the availability of quality working environments, which in turn is driving significant income returns.”
Matt Jarvis, Senior Fund Manager of the UK Property Fund at Legal & General, said: “This is an excellent buy for the Fund. The Bristol office market is currently undersupplied and has strong rental growth prospects as a result of this undersupply. The building also benefits from flexible floor plates which are in demand in the City. The combination of these strong property fundamentals and good micro-location will make this a strong performing asset for our investors as we refurbish and upgrade them over time. We have recently undertaken a similar exercise at The Landing in Redcliff Quay and have been very pleased with the level of tenant interest for modern, stylish, well connected assets in attractive city centre settings.”