Lothbury offloads Oxford office with record rents

Brydell Partners has become the new owner of North Bailey House in Oxford city centre. The REIT bought the 28,563 sq ft building for £21.3m, reflecting a net initial yield of 6.85%, from Lothbury Investment Management on behalf of the Clarendon Unit Trust. The 22,641 sq ft of office space is fully let to Valebond Consultants, trading as Ryze Hydrogen, on a 10-year lease. The deal set a record Oxford office rent of £63.46 per sq ft. The remaining 5,922 sq ft is retail and leisure space. North Bailey House forms part of a major urban regeneration project and is located adjacent to the Clarendon Centre redevelopment, a major new science and technology hub in Oxford that is expected to complete in 2028. CBRE advised the vendor, while Kimmre acted for Brydell.