Agents pick the most significant Deals (for the six months to the end of April 2016)
Bridgewater House, Finzels Reach, Bristol
Deal type Office investment
Vendor Palmer Capital and Cubex Land
Purchaser Overseas investors
Size 115,000 sq ft
Value £56.3m
Yield 5.35%
Chosen by Andrew Main, investment director, Savills
When first acquired by Palmer Capital and Cubex Land in 2013, Bridgewater House was just 24% let. It was built to shell and a speculative, major fit-out was undertaken, helping to facilitate the letting of 80,000 sq ft to EDF and leading to the building now being fully occupied. What this deal really demonstrates is the impressive strategic approach at Finzels Reach, one which Palmer Capital and Cubex Land have been able to capitalise on through this sale of the investment. The sale to overseas investors is also reflective of the increasing international interest in Bristol, with our research showing 21% of 2015 deals being concluded with non-domestic investors. Overall, it is a really a significant and positive deal for Bristol, one of the largest over the past few years, also one of the biggest overseas investments, and an indicator of the strong demand from both investors and occupiers for prime office space in the city.
Central Park, Severnside, Avonmouth
Deal type Occupational land sale
Vendor Severnside Distribution Land
Purchaser Lidl
Size 33 acres
Value Undisclosed
Chosen by Russell Crofts, partner, Knight Frank
The sale of 33 acres of land at Central Park to Lidl confirms Bristol’s coming of age as a key strategic location for the new generation of “supersheds”. It plans a 600,000 sq ft warehouse there – double the size of its existing regional distribution centre in Weston-Super-Mare and one of its largest in the UK. Its choice of location demonstrates the significance of Bristol as a regional capital on the UK logistics map. Coming hot on the heels of the nearby sale of land to The Range for a 1.2m sq ft facility, Lidl’s announcement also signals returning demand for very big sheds in Bristol after a number of tough years.
During that time Central Park’s owner undertook infrastructure improvements and these, combined with a planning consent that allows B8 development without further permissions, have attracted new occupiers in 2016 that will develop almost 2m square feet of modern logistics space and provide more than 1,500 new jobs.
Horizon 38, Filton, North Bristol
Deal type Industrial development
Partners BP Pension Fund, St Francis Group, iSec
Size 580,000 sq ft speculative distribution/industrial space
Price Part of a £120m total development
Chosen by Paul Hobbs, Director, Bilfinger GVA
Horizon 38 could be as significant for north Bristol as Temple Quay has been for the city centre. The funding deal announced in January between BP Pension Fund and St Francis Group and iSec secures the development of 580,000 sq ft of speculative warehouse and industrial space at the former Rolls-Royce site, the first part of a 1.2m sq ft commercial development. This deal provides a clear statement of the returning popularity of Bristol in a national development context. It is also one of the largest industrial, multi-let speculative funding deals in the UK since 2008. In common with most of the UK, the economic downturn led to a serious lack of investment in the region’s industrial stock, leaving occupiers with little or no choice. With the local population increasing, it’s the perfect time for new employment opportunities to be created at Horizon 38, where the first buildings are due to be completed early in 2017.
JLL predicts big things
JLL was forecasting a ‘watershed’ year in 2016 for Bristol redevelopment, with strong economic conditions, infrastructure improvements and good performances across all sectors acting as catalysts for increased activity.
Tasty scheme
Umberslade submitted plans for its Cargo scheme, a foodie-focused, retail hub made of 10 recycled shipping containers with glass frontages, to be based at Bristol’s Wapping Wharf.
Profits up at Hartnells
South West specialist Hartnell Taylor Cook announced increased profits – up by 12% to £1.97m – with good performance in the Bristol office sector and a stake in more than £100m of regional investment transactions.
Industrial appointments
JLL appointed two new members to its Bristol industrial team after a record 22% increase in turnover in 2015, advising on 1.8m sq ft across 73 deals.
Growing Ivy
The Ivy announced it is to open its first restaurant outside of London in the Clifton area of Bristol, at West Country Properties’ 44 Caledonia Place, a former banking hall.
Expansion anxiety
Savills warned that Bristol, which has had the fastest-growing economy outside London, could become a victim of its own success if more houses and offices were not planned.
EG gauges the trials and tribulations of Bristol’s property market
7 things you need to know – vital statistics, facts and figures for Bristol
£1bn
the expected investment following a devolution deal, with elected metro mayor, for Bristol and adjoining authorities
5.25%
the prime Bristol city centre office yield in Q1 2016, against a 10-year average of 6.21%
19.3%
predicted GVA growth for Bristol 2015-2025
195,500 sq ft
city centre office take-up in Q1 2016, the highest first-quarter figure since 2007
£16.7m
the contribution made by television and film production to the Bristol economy in 2015/16
71%
amount of office-led investment transactions in 2015. The total value for investment across all sectors amounts to £595.6m
£300m
the cost of a planned extension to The Mall at Cribbs, to include restaurants, hotel and residential space
Sources: JLL, Irwin Mitchell/CEBR, Colliers International, Bristol Film Office, Alder King
