Picton has bought Bristol city centre office building Tower Wharf for £23.1m – a 3.6% yield.
The office is adjacent to Temple Way, and equidistant to Temple Meads railway station and Cabot Circus shopping district.
The property has an unexpired lease term of 5.2 years and provides a low average passing rent of £19.65 per sq ft from four occupiers: Oracle, Newlaw Legal, Ashfords and Lambert Smith Hampton.
Fraser D’Arcy, investment director at Picton, said: “Constrained by a lack of grade A office space and a limited development pipeline, the occupier market in Bristol is currently seeing good demand for high quality space in buildings like Tower Wharf. Against this backdrop and recognising the reversionary potential, this purchase is aligned with our strategic objective to grow both income and our asset base.”
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