Sol Zakay’s Topland Group has sold 10 Canons Way, Harbourside in Bristol for £95.5m to a South Korean investor, advised by Knight Frank Investment Management.
The price for the 176,611 sq ft building is understood to reflect a yield of just over 5%. It is let in its entirety to Scottish Widows until November 2032. It forms part of a regional hub of Widows’ parent, Lloyds Banking Group.
Mark Kingston, managing director at Topland Group, said: “This was an opportunistic sale where we were approached off market and decided to take advantage of a sale before year end.”
David Johnson, partner at KFIM said, “This is our fourth successful transaction on behalf of our Korean clients. The dynamic Bristol market has, we believe, good long-term performance characteristics. In addition, the investment grade tenant covenant and length of income provided by Canons Way has allowed us to take advantage of the current arbitrage between property yields and the cost of borrowing to provide our client with a significantly enhanced income return. We continue to seek assets with similar investment characteristics both here in the UK and on the continent.”
Nick Allan, investment partner at Cushman & Wakefield, which acted for Topland, said: “The Bristol market continues to flourish with significant occupier demand, rental growth and rapidly reducing supply making the dynamics for investment in the city very compelling. Bristol’s growing significance with international investors continues and this represents the third significant transaction with South Korean investors we have been involved with this year.”
CBRE acted for KFIM.
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