Pension fund clients of the Prudential have paid £2.3m for the leasehold of the 1,700 sq m (18,200 sq ft) Princes House on Bristol’s Prince Street. The deal represents a net initial yield of 8.2%.
The property’s lease is in excess of 100 years. It is let under four 10-year leases to tenants including Mott McDonald, with a tenant-only lease break after five years.
Alder King, which advised the vendor Kent Holdings, said that although the property was only let 12 months ago, the rents are already due for a substantial upward revision, reflecting the tightness of the Bristol office market.
Chesterton advised the purchaser, a client of PRICOA Property Investment Management (part of the Prudential Insurance Company of America).
EGi News 24/10/01
