Investment manager Lothbury has completed the off-market purchase of The Paragon, a multi-let office building in the UK city of Bristol.
Investment manager Lothbury has completed the off-market purchase of The Paragon, a multi-let office building in the UK city of Bristol.
The investment volume of £29.4mln (€35.5 mln) reflects a net initial yield of 5.93%. The vendor is Invesco Real Estate UK III Fund.
The Paragon was completed in 2009 to BREEAM 'Excellent' rating and comprises 6,363 m2 of offices and 642 m2 of retail accommodation on the ground floor. The building is situated on Victoria Street, which links the city centre and Bristol Temple Meads railway station, just east of Bristol’s floating harbour. It sits opposite the Finzels Reach mixed-use development.
The office space at the Paragon is fully let. The ground and first floors are let to Mercer, the second and third floor offices are occupied by Ernst & Young and top two floors are let to solicitors Thrings. The retail units are let to Tesco Stores and coffee shop, Friska. The third unit of 1,710 sq ft has just been let to delicatessen Rennies Good Food. The space is let at between £20 and £27.50 per square foot and returns a total rental income in excess of £1.8 mln.
Tudor Toone acted for Lothbury Investment Management and Hartnell Taylor Cook acted for the vendor.
London-based Lothbury Investment Management Limited had £1.3 bn of assets under management at end-2013.
