AEW UK Core Property Fund acquires three properties in Bristol city centre

AEW UK Core Property Fund (AEW) has announced the acquisition of three mixed use assets located at the heart of Bristol’s bustling city centre for a total of £12.15m.

Bristol city centre is currently undergoing major regeneration; the sites acquired have significant development potential, with the surrounding area experiencing considerable transformation and a number of notable developments and conversion projects underway. The three acquisitions in Broadmead, Merchant Street, Fairfax and Nelson Street are all mixed use assets comprising leisure, office and retail accommodation.

56-64 Broadmead & 41-45 Merchant Street, in the heart of Bristol’s central shopping area was bought for £6.7m reflecting a net initial yield of 8.1%. It provides 22,084 sq. ft., is fully let and has an average WAULT of 6.4 years.

Next to this AEW has acquired Soho Studios, 47-49 Merchant Street for £3.22m reflecting a net initial yield of 7.1%. The property has recently been comprehensively refurbished and provides 8,827sq. ft. of high specification accommodation over ground, first and second floors with an average WAULT of 6.9 years.

Lastly, AEW has acquired 3-11 Fairfax Street & 15-18 Nelson Street, a property located nearby in Bristol’s city centre, for £2.25m reflecting a net initial yield of 8.5%. It occupies a prominent location on the Western edge of Broadmead close to Cabot Circus, Bristol’s premier retail destination. The 31,883 sq. ft. property is within a short walk from the Galleries shopping centre, Castle Park and the Finzels Reach development.

All three properties are well let to some household names including Vodafone, EE, and Coventry Building Society.

Commenting on the acquisitions, Michael Shears, AEW UK Core Property Fund said, “We are delighted to announce three parallel investments in Bristol city centre. These are extremely well-located and prime mixed-use assets, with significant opportunities for asset management and maximising returns to investors.

We believe each of the three assets have all the required fundamentals to maintain their value and to continue delivering returns to shareholders as mixed-use assets, whether as retail, leisure or office space.”

Agents acting for AEW were Cushman & Wakefield on Broadmead, Knight Frank on Soho Studios and Fawcett Mead for Fairfax Street.