Agents pick the most significant deals (six months to the end of July)
66 Queen Square, Bristol
Type of deal Speculative development/investment sale
Vendor Skanska
Purchaser Aviva Investor Property Trust
Size 61,484 sq ft
Price £32.7m
Yield 4.95%
Chosen by John Benson, partner, Alder King
The forward sale of 66 Queen Square by Skanska to Aviva in June was the first speculative scheme conceived and delivered in the current market cycle to be sold. I believe it rewarded the developer for both good judgement and early speculative commitment.
Acquired in the recession, Skanska’s bold decision in 2013 to carry out an office development that fused new-build with a retained Grade II-listed Georgian façade, was equally rewarded with 90% being prelet to KPMG and Handelsbanken prior to completion. Top market rents of £28.50 per sq ft secured strong UK and European institutional interest, driving the exit yield to pre-recession levels.
The development confirms Queen Square’s enduring position as a prime office location and will further encourage strong activity in the immediate locality and across the city. All in all, it’s a textbook example of reading the market.
Milsom Place, Bath
Type of deal Retail investment sale
Vendor L&R Group
Purchaser TH Real Estate (formerly TIAA Henderson Real Estate)
Size 63,500 sq ft
Price £26.1m
Chosen by Philip Marshall partner, Carter Jonas (Bath)
Milsom Place has experienced mixed fortunes. After a challenging first few years as Shires Yard, it was purchased in 2001 by L&R, which set about expanding and rebranding it, adding contemporary architectural touches and selling the concept to Jamie’s Italian, Carluccio’s, Cote, YO! Sushi, Cath Kidston, Hobbs and Phase Eight.
The reason I have chosen the recent investment sale of this scheme is because it demonstrates the stability and maturity of this location at the northern end of the city. Since the deal, Burger & Lobster and CAU have been secured there, and this area is now the strongest part of the retail offer with demand exceeding supply for big-name and first-in-the-UK retailers.
The scheme forms an essential element of the retail geography of Bath and I believe it is likely to prove an asset Henderson will be proud to own, combining strong name covenants with an enviable location and environment.
The Ship, Derriford, Plymouth
Type of deal Production facility sale
Vendor Helix Property Advisors (on behalf of Daily Mail General Trust)
Purchaser Burrington Estates
Size 115,000 sq ft (in 12.7 acres)
Price £2.5m
Chosen by Mike Oldrieve, consultant, Vickery Holman
My choice is the sale, this summer, of The Ship at Derriford. Not only is this one of Plymouth’s most iconic buildings, which has just been listed by English Heritage, but the deal represents one of the largest property transactions in the city in recent years.
Designed by Sir Nicholas Grimshaw to reflect Plymouth’s maritime heritage, it was home for 20 years to the regional newspaper the Western Morning News until 2013, when it relocated to new offices in the centre of Plymouth.
The Ship provides an exceptional opportunity for the Plymouth market, which Burrington Estates recognises having now secured the property.
A major refurbishment is planned and will include one of its new Thrive Hubs – inspiring business environments in which companies can “thrive”.
I can remember attending the opening of this headquarters and print facility as a young chartered surveyor.
Going forward, I now think it has a great role to play in Plymouth’s future.
Goodman banks on Bristol
In Bristol, a redevelopment site could finally come forward after nearly 20 years of disputes and delays following Goodman’s purchase of land at St Mary le Port for a price believed to be in the region of £24m.
Empiric makes a splash in Bath
Empiric has invested heavily in South West student accommodation, making two purchases in central Bath comprising 250 beds and buying a 61-bed development in Exeter.
Devon new town a step closer
A consortium comprising Bovis Homes, Linden Homes and Taylor Wimpey was launched in July to bring forward the £1bn development of Sherford new town near Plymouth. It will build 5,500 homes, plus schools, shops, leisure and community facilities.
Bristol office market leaps
Investment in the Bristol office market rose by nearly 300% – to £194m – in the first half of the year, according to BNP Paribas Real Estate.
Lloyds hires willock
Lloyds has appointed David Willock from RBS as relationship director for the South West and Wales. The new role involves supporting six specialist real estate divisions across the region.
Bristol regen worries
Plans for Bristol’s new arena continued to be finalised but some of the city’s property professionals started to raise concerns about the prospects for wider regeneration around the venue.
