Developer Castlemore Securities has surprised Bristol’s investment agents with the sale of two buildings at its Temple Quay scheme to Universities Superannuation Scheme (USS) for £20m. The deal is one of the largest in the city this year.
USS has aquired the 2,806 sq m (30,200 sq ft) plot 4b building for £8m, reflecting a yield of 7%. The building is occupied by troubled serviced offices operator Regus at a rent of £215.3 per sq m (£20 per sq ft).
The fund has also purchased plot 4a on the scheme – the 5,159 sq m (55,528 sq ft) 1 Temple Square – for £12m, which also reflects a yield of 7%. This is a multiple occupancy building with 3,390 sq m (36,500 sq ft) of offices and 1,769 sq m (19,028 sq ft) of retail. All three office tenants – Arthur Anderson, Offsted and 3i – are paying £209.9 per sq m (£19.50 per sq ft).
This is the second investment deal at the 79,000 sq m (850,000 sq ft) city centre office scheme, where the only site now available has been zoned for hotel development.
In November 2000, Castlemore sold one of its major developments at Temple Quay in Bristol for £36.1m to a limited partnership established by Matrix Securities. The 13,145 sq m (141,500 sq ft) building on plot 4C was prelet on a 20-year lease to the then Department of Environment, Transport and the Regions, now rebranded the Department of Local Government, Transport and the Regions.
Following the latest deal with USS, John Benson of Castlemore’s agent Alder King said that a further “four to five buildings” would be placed on the market.
Insignia Richard Ellis represented USS.
EGi News 05/07/01
