Tesco Pension Fund has completed a deal to forward-fund Cubex and Fiera Real Estate’s Halo offices in Bristol for £70m.
The 116,000 sq ft office is currently under construction and once completed will be one of the greenest offices in the UK, targeting a BREEAM Outstanding accreditation to meet the toughest new sustainability assessment criteria.
Halo is part of Cubex’s £275m Finzels Reach regeneration, with 1m sq ft of development spanning six acres in Bristol city centre.
The office will have a drone landing pad, rooftop-mounted photovoltaic panels and LED lighting throughout.
Law firm Osborne Clarke has prelet the top five floors, taking 74,000 sq ft, with a further 42,000 sq ft currently being marketed by Knight Frank and Lambert Smith Hampton.
David Russell-Smith, fund manager at Tesco Pension Fund, said the fund had identified Bristol as a “strategic hotspot”. He added that it will be working “to deliver the next benchmark for sustainable, high-quality office space in Bristol and creating further value through the completion of its leasing”.
Chris Button, fund manager at Fiera Real Estate, added: “The sale has provided our underlying investors with an attractive risk-adjusted return and allows us to recycle equity to be redeployed during the remainder of 2020.”
CBRE advised Cubex and Fiera, with Savills acting for Tesco Pension Investment.
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