Floreat Real Estate has purchased two offices in Bristol and Cardiff from Oval Real Estate in a £44.7m off-market deal at a net initial yield in excess of 7%.
The deal comprises the 137,000 sq ft Castlemead, the tallest office building in Bristol, and Churchill House, an 87,000 sq ft office building with retail space in central Cardiff.
Floreat said the properties represented an opportunity given the lack of new office supply and the buoyant occupational market in the regions.
It is Floreat’s second transaction of the year, having bought the Shipping Building at The Old Vinyl Factory from Moorfield for more than £29m in January.
William Hardyment, principal at Floreat, said: “The assets, located near the cities’ retail districts and transport hubs, provide a compelling offer for occupiers.
“The purchase helps fulfil our strategy to acquire quality buildings, with high underlying site values and sustainable income.
“This enables us to add further value, through active asset management, by creating work places that can help our customers attract and retain talent.”
Montagu Evans acted for Floreat and CBRE acted for Oval.
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