Benson Elliot has completed its purchase of one of Bristol’s largest office developments from UK & European Investments.
The private equity fund manager has bought the 122,000 sq ft Templeback office building in the city centre.
NFU occupies 44,000 sq ft in the building, which was completed in 2009. The remaining 78,000 sq ft remain vacant five years on from completion.
Benson Elliot plans to undertake a light-touch refurbishment of the reception area as it attempts to lease the remaining space.
No terms for the deal were disclosed; however, agents said the building could be valued at around £60m once the leasing campaign was completed.
The deal is the latest in Benson Elliot’s string of acquisitions of partially let office developments.
The company bought 11 Brindleyplace in Birmingham from Argent this summer and 55 Princes Square in Manchester.
James Jakeman, principal at Benson Elliot, said: “This opportunity bears all the hallmarks of the kind of investment Benson Elliot is striving to make in the UK – a high-quality asset that is located in a recognised business location with strong and improving transport links. We continue to believe in the investment case offered by key regional office markets across the UK.”
Barney Kelham, UK chief executive of UK & European, added: “This has been a successful off-market transaction and we are delighted with the result achieved. We feel this is the right moment in the cycle to sell the asset and take advantage of the recent significant improvement in the wider UK regional office investment market.
“This strategic sale provides us with an opportunity to reinvest capital and to continue to focus our attention on new opportunities.”
Farmer Capital advised the purchaser.
