Aerium snaps up Bristol property for EUR 97m

European real estate fund manager Aerium has announced the acquisition of One Glass Wharf at Temple Quay Central in Bristol from administrators PwC for £83 mln (EUR 97 mln), representing a net initial yield of 6.84%.

Completed in 2010, One Glass Wharf provides 216,172 sqft (20,083 m2) of new flexible Grade-A office space across five floors together with 115 secure basement car parking spaces. Situated in Temple Quay, Bristol's central business district, the asset is 81% let to law firm Burges Salmon for 20 years. The remaining vacant space is subject to a sellers guarantee in excess of five years.

Aerium has instructed agents DTZ and Alder King to seek occupiers for the remaining space.

The property was originally developed by Castlemore Securities, which went into receivership in early 2010. 'We are very pleased to have announced the acquisition of this prestigious property in partnership with our capital investors from the Middle East,' said Franck Ruimy, CEO of Aerium. 'This is a significant purchase outside of the Central London market of a very high-quality, trophy asset. All core UK business markets are beginning to show a reduction in the supply of prime stock coming onto the market, which will further support the underlying demand for space in this type of asset and therefore steady rents going forward.'

CBRE acted for Aerium. King Sturge and Alder King advised PwC.