Ediston Property Investment has bought an 18,500 sq ft office block in Bath, Somerset, for £4.4m – a 7% yield.
The recently refurbished Midland Bridge House, on Lower Bristol Road, is within the Bath City Riverside Enterprise Area, which is undergoing significant investment and development.
The building is let to solicitors Withy King until March 2023. The rent rises to £323,330 pa in March 2017, equivalent to £17.50 per sq ft, producing a yield of 7% at that point. There is a rent review in March 2018.
Calum Bruce, director of investment at Ediston Properties, said: “Midland Bridge House provides a good-quality income stream, which has the potential to grow owing to the favourable supply and demand dynamics in the Bath office market.
“The grade-A vacancy rate is estimated to be as low as 1%. As part of the Western Riverside regeneration area the surrounding land is earmarked for development for a range of uses, which should further improve the fundamentals of this asset.”
