Orchard Street Investment Management, the specialist commercial property investment manager, has acquired a multi-let industrial estate in central Bristol for £30 mln (€36 mln).
City Business Park was acquired from LaSalle Investment Management on behalf of St James’s Place Property Unit Trust.
Located close to Bristol city centre, the freehold estate comprises nineteen units totalling approximately 118,000 ft2 (10,960 m2) across a six-acre site.
All the units are let or under offer at a very low passing rent of £7.80 per ft2 overall, offering strong rental growth prospects when compared to rental values in the area in excess of £12.00 per ft2.
In line with Orchard Street’s responsible investment approach, the business plan comprises improving the estate’s ESG credentials through a programme of asset active management. Measures will include installation of solar PV panels and electric vehicle charging points and improving all EPC ratings.
The acquisition aligns with Orchard Street’s Net Zero Carbon Pathway and its goal to acquire assets with significant potential for ESG improvement.
Harry Buxton, acquisitions manager at Orchard Street, commented: 'This strategically located, multi-let asset represents an excellent addition to our client’s portfolio, providing a low density industrial estate in central Bristol which lends itself to last mile delivery.
'Its multi-let nature provides us with numerous opportunities to improve its sustainability credentials whilst importantly allowing us to capture the highly reversionary rents in the near term to generate value on behalf of our investors.'
Orchard Street was advised on the acquisition by Stonehill Partners, whilst LaSalle Investment Management was advised by TT&G Partners.
