UK Commercial Property REIT (UKCM) has sold a 67,000sqft office building in Temple Quay, Bristol to Tri7 for £14.5m (€16.4m).

The Abrdn-managed FTSE 250 real estate investment trust said the disposal price of the 2 Rivergate office property was in line with the asset’s 31 December 2023 valuation.

The property is let for one more year to The Secretary of State for Levelling Up, Housing & Communities until March 2025.  

Will Fulton, fund manager of UKCM at Abrdn, said: “Although well located in Bristol, this property is close to the end of its economic life with a short lease left to run. Having worked on many options, we believe this investment would most benefit from a significant injection of rejuvenation capital, a process that necessitates an extended period of no income.”

Samuel Castle, partner at Tri7, a value-add real estate investment and asset management firm, said: “In line with our focus on town and city centre regeneration sites, 2 Rivergate in Bristol provides a compelling opportunity for our value-add strategy.

“Following soon after our purchase of the Portswood Shopping Centre in Southampton earlier this year, we continue to be on the acquisition trail across the country where our significant level of dry powder coupled with our expertise in unlocking value through asset management means we’re in a position to take on complex sites and deliver attractive returns.”

To read the latest IPE Real Assets magazine click here.