Bristol (six months to end March 2014)
Finzels Reach, Bristol
Purchaser Cubex & Palmer Capital
Type of deal Acquisition from receivership
Size 4.7 acres
Price Undisclosed
Chosen by Julian Harbottle, director, development department, Savills (Bristol)
I consider that when Cubex, backed by Palmer Capital, acquired Finzels Reach it could not have sent a more positive message to the market that city-centre mixed-use development was once more a viable proposition. The site, formerly occupied by Courage, has a lot of ‘previous’, most recently ending up in receivership when the banks pulled the plug on funding. But on a upbeat note, it has planning permission for a substantial scheme, including more than 400 apartments and 115,000 sq ft of offices. I believe Cubex and Palmer have acquired an opportunity that gives them a fabulous platform to add value through positive management. The already developed Bridgewater House remains one of the prime grade-A office buildings in the city and the relaunched residential units are selling well. So I think this investment clearly shows that the market for well-located brownfield development is back.
Be At One, The Triangle, Bristol
Vendor Hermanos Limited
Purchaser Be At One
Type of Deal Leasehold Assignment
Size Circa 2,000 sq ft
Price Undisclosed
Chosen by Kevin Conibear, associate, Fleurets (Bristol)
The arrival of Be At One cocktail bars – its first operation outside London and the South East – demonstrates that Bristol is viewed as a leading regional city for expansion. More specifically, The Triangle as a location has been transformed from a retail-led pitch to arguably the strongest leisure pitch in the city and this deal further reinforces that trend. Be At One spent a considerable amount of time in Bristol studying the pitches to identify the best location. At The Triangle it now joins mainstays such as Browns and Wagamama and more recent arrivals Bill’s, Koh Thai and Bottelino’s. Also opening imminently is steak restaurant Cau. So, Be At One has become part of an eclectic mix of leisure operators that have created an all day and evening pitch. Through this and other deals we have also seen further proof of operators being prepared to pay premiums in order to unlock prime sites.
1-4 New bond street, Bath
Landlord Standard Life
Tenant Anthropologie
Type of deal Retail letting
Size 14,000 sq ft
Terms Undisclosed
Chosen by Mike McElhinney, partner, Carter Jonas (Bath)
Three years ago the prospects for New Bond Street – in the fashionable northern area of Bath city centre – were not looking rosy following the closure of Habitat, after 40 years of trading there, and with the new SouthGate area opening. Today the scene could not be more different as evidenced through the recent letting by Standard Life to American lifestyle retailer Anthropologie. That makes it my choice for a top deal. Anthropologie will transform the retail offer in that area, complementing recent nearby lettings to Whistles, Jo Malone, Seasalt, India Jane and several independent retailers. Choosing Bath for its first UK store outside London is also an underpinning of the view that the city is proving itself to be a fashionable and desirable location in the provinces for top-end lifestyle and fashion brands. The city’s retail offer is truly reborn and set to thrive. The Anthropologie deal has not necessarily been the catalyst for this – but it is certainly the cherry on the top.
Going up
Two major office requirements began circulating for Bristol city centre. Ovo Energy asked DTZ to launch a search for 60,000 sq ft – adding to TSB’s requirement, through agents CBRE, for 50,000 sq ft (see feature, p94).
Plans for an £83m arena for Bristol reached several key landmarks. February saw the city approve a £38m support package, a search for an operator got underway and the council was preparing to push the button on the design process.
Bristol’s office market enjoyed a buoyant first quarter with figures from JLL showing take-up at 224,000 sq ft, 27% above the five-year quarterly average.
Invesco Real Estate sold its 75,400 sq ft, multilet office building The Paragon to the Lothbury Property Trust for £29.5m.
Going down
Agents expressed disquiet over the level of office-to-residential conversions – expected to involve 500,000 sq ft of space this year – believing it could threaten the chance of creating a central business district.
Analysis by GVA shone a spotlight on the fact that only 1.1m sq ft of speculative development is taking place in nine regional cities including Bristol – giving these centres just seven months’ new supply.
EG gauges the trials and tribulations of the Bristol property market
