Agents pick the most significant Deals (for the six months to end of April)
Access 18, Avonmouth, Bristol
Type of deal: Logistics prelet
Developer: St Modwen
Tenant: Hermes Parcelnet
Size: 43,100 sq ft on 3.45 acres
Price: £8.11 per sq ft
Chosen by: Paul Hobbs, director, Bilfinger GVA
I see this deal as an interesting barometer of national market trends in terms of both the design and a shift in the sentiment of what investors will accept in terms of lease length.
The deal involves a 43,100 sq ft unit on a site of 3.45 acres, meaning it represents only 29% land coverage, and the design fully reflects the demands of the dominant parcel sector.
St Modwen has also agreed a 15-year lease with a 10-year break – the acceptance of the break acting as a market statement as such a product becomes more commonplace. In fact, the investment has just come to market at a 6% initial yield.
St Modwen was already pushing to start speculative industrial supply in the South West during 2015 but this deal has given the initiative just that bit more backing. It is a true turning point and it has been a catalyst for others to dust off appraisals as we approach the summer.
Keypoint, Almondsbury, Bristol
Type of deal: Office letting
Landlord: CBRE Global Investors
Tenant: TSB
Size: 64,000 sq ft
Rent: Undisclosed
Chosen by: Chris Grazier, partner in charge of office agency, Hartnell Taylor Cook
The letting of Keypoint to TSB is the largest standing office building let in the Bristol out-of-town market since 2000.
It followed the creation of the new standalone retail banking business by Lloyds Bank, and maintaining TSB in the city was a major coup because it underlined Bristol’s significance as a thriving centre for the financial sector. The selection of a north Bristol building rather than a central one has also given renewed impetus to the city’s out-of-town market.
This letting further reduces already low stock levels in the north of the city, improving the prospects for other secondhand buildings and increasing the possibility that larger occupiers will commit to prelet deals.
Not only could this spark a new wave of development across the area, it could also act as a prompt for further speculative office development. It all goes to show what a difference one deal can make.
Wahaca, 78 Queens Road, Clifton Triangle, Bristol
Type of deal: Leisure letting
Landlord: British Overseas Bank Nominees
Tenant: Wahaca
Size: 5,500 sq ft
Rent: Undisclosed
Chosen by: Adam Crooks, surveyor, Rapleys
The recent leasehold acquisition by Wahaca in the Clifton Triangle is a further illustration of how the area, historically occupied by A1 retail users, is increasingly establishing itself as a popular food and beverage destination.
The Mexican-themed restaurant, a business co-founded by former Masterchef winner Thomasina Miers, has taken 78 Queens Road, which was formerly occupied by home accessories retailer Butlers. The restaurant’s desire to gain a presence in Bristol, and specifically the Clifton Triangle, has led to them taking a unit with minimal frontage and poor configuration, which, in other markets, may have been less than desirable.
While the increase in food and beverage operators is undoubtedly positive in the area, contributing significantly to its viability and vitality, there are concerns over the loss of A1 retail space. With other national brands still vying for space in the Clifton Triangle, it will be interesting to see if the local planning authority will, ultimately, restrict such uses.
Aviva plans Bristol expansion
Aviva Investors is poised to purchase Skanska’s 66 Queen Square for in excess of £30m. Earlier in the year the majority of the building was let to KPMG for £28.50 per sq ft – a record rent for the city.
Urbis scopes city regeneration
Urbis received consent from Bristol city council to produce a draft masterplan for a £135m regeneration of the city’s Bedminster area.
Axa seeks to grow presence
Insurance giant AXA appointed JLL to seek out 75,000 sq ft of offices for them in the city – one of Bristol’s largest requirements.
Office take-up rises 61%
Bristol office take-up in 2014 reached 836,800 sq ft, a rise of 61% compared with the previous year, according to a CBRE report.
Resi scheme gets green light
A mixed-use development for a derelict area of Redcliffe in central Bristol, delivering housing and retail, was given the go-ahead by the city council.
Transformation plan for mall
Owners of The Mall at Cribbs – M&G Real Estate, intu and JT Baylis – submitted plans for a £316m extension, including anchor store, leisure and residential elements, to South Gloucestershire council (see feature, p98)
City offices lost to resi
Bristol lost more than 800,000 sq ft of its office space to residential redevelopment, according to LSH, making it the worst hit regional city in the UK.
