F&C Commercial Property Trust (FCPT) has acquired an office in the southwestern English city of Bristol for £33.5 mln (€38 mln) from Castleforge Partners.
The purchase price for One Cathedral Square represents a yield of 5.0%.
FCPT is managed by BMO Global Asset Management’s real estate investment manager, BMO Real Estate Partners.
'This acquisition complements the portfolio’s existing holdings and provides secure income that is backed by solid financial covenants, while also delivering an attractive yield,' commented fund manager Richard Kirby. 'With current supplies of Grade A office space in Bristol at an all-time low and the city increasing in appeal to a broad range of commercial occupiers, we have confidence in the fundamentals supporting our ability to deliver both capital and income growth on behalf of our shareholders from this investment.'
The grade A office, which totals 65,059 ft2 (6044 m2) over four floors, was constructed in 1987 and refurbished in September 2017. The asset has been acquired fully let to the University of Bristol and Dyson Technology on a WAULT of 12.4 years to expiry and 7.6 years to break, generating rental income of £1.78 mln (€1.9 mln) per annum.
FCPT was advised by CBRE on the deal, while the vendor was advised by Colliers.
