Cubex Land, backed by The Palmer Capital Development Fund II has sold to Invesco Real Estate one of Bristol’s prime office investments – The Paragon – for £26,464,000.
The high quality office investment was developed by top Bristol developer, Cubex Land, backed by Palmer Capital Partners. Construction was completed in 2009, to a BREEAM ‘Excellent’ Grade A.
The building has been described as “The ‘Very Best’ office space located in the heart of Bristol’s vibrant business hub”. It incorporates three retail units at ground floor. The entire building totals 75,373 sq ft with parking for 39 cars, 7 motorbikes and 36 bicycles.
The Paragon is 85% let with Ernst & Young LLP, Mercer Limited and Tesco Stores Limited all joining Thrings Townsend Lee & Pembertons, who took a pre-let of the fourth and fifth floors.
The investment is held on a long lease from Bristol City Council for a term of 150 years at a ground rent of £93,000 per annum. The property generates a net rental income of £1,848,397 per annum. The investment price reflects a net initial yield of 6.62%.
Peter Walford, Director at Cubex Land, said: “This deal is perfectly timed with the building let and an imbalance between demand and supply in central Bristol creating a market dynamic providing excellent prospects for rental growth – which together have driven the price achieved.”
Chris Button, Director at Palmer Capital, said: “This is the most significant investment deal in Bristol in the last 12 months. The sale is the product of a quality building and a perfectly executed business plan, combining Cubex’s development expertise and Palmer Capital’s funding strength. The tenant line-up goes to show how quality will always attract quality
Hartnell Taylor Cook LLP advised Invesco Real Estate on the purchase and Jones Lang La Salle and GVA advised the vendors Cubex Land/Palmer Capital on the sale.