F&C Commercial Property Trust (FCPT) has acquired an office property in South West England for £33.5m (€35.7m).

BMO Real Estate Partners, which manages the fund, said it bought One Cathedral Square, a 56,059sqft, four-storey asset in Bristol from Castleforge Partners.

The purchase price represents a yield of 5%.

The asset is fully let on a weighted-average unexpired lease term of 12.4 years to expiry and 7.6 years to break, generating rental income of £1.78m per annum, it said.

Fund manager Richard Kirby said: “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.

“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.”

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