Orchard Street Investment Management has completed the purchase of 10 Templeback in Bristol city centre for £58.5 million. The waterfront office building, competed in 2008, was acquired from Benson Elliot on behalf of St James’s Place.
10 Templeback, which has a BRREAM “excellent” rating, provides 124,198 sq ft of Grade A office space across its six floors, and offers occupiers a range of amenities including shower facilities and bike storage. It benefits from excellent transport links and its close proximity to the region’s premier shopping centre, Cabot Circus.
The property has a tenant line-up featuring Colliers International, NFU, ADP, Mott Macdonald and Momentum Financial Technology for a combined passing rent of £3.3 million per annum. However, 41,629 sq ft of Grade A space remains vacant, meaning Orchard Street can utilise a range of asset management initiatives to boost the annual income further going forward.
Orchard Street partner Barney Rowe believes that the latest asset in the investment manager’s portfolio will prove to be profitable in both the near and long term.
He says; “We are pleased to have secured this highly liquid, prime office asset in one of the UK’s strongest regional cities. It benefits from excellent fundamentals and a prominent position in the heart of Bristol’s main office core.
“A combination of the strong covenant strength on the existing income and the severe supply and demand imbalance in the Bristol occupational market provide real opportunities for both rental and capital growth.”
Discussing the reasons for the disposal of the property Benson Elliot Managing Partner, Marc Mogull, explained “We have successfully marketed a number of our mature UK regional assets in BEREP II during the past 12 months, and have also had unsolicited approaches on our BEREP III portfolio, reflecting the strong appetite amongst investors for institutional quality properties like Templeback.
“The returns we have secured from these seven investments support our conviction to be an early mover into the regions, and underscore the success we have had in implementing our value-add programmes. The disposal brings Benson Elliot’s total proceeds from seven UK exits during the past 12 months to over £275 million.”
Orchard Street was advised by Savills, Benson Elliot was advised by Farmer Capital.
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