It was a busy year for the Bristol investment agency team who completed four out-of-town office investment deals across Bristol, amounting to a combined total of over £12m. With three deals completed at Aztec West and one at Bristol Business Park, appetite outside of the city centre remains strong for the right deal.
The largest deal to complete saw the team sell a single let, 18,314 sq. ft building at Bristol Business Park to a Family Office this summer. The building was sold for £4.63m – above the asking price – and offers tenants the ideal post-pandemic hybrid workspace, boasting a flexible, open-plan office space.
Yet, this was only one in a string of major deals completed in business parks over the past twelve months, with Aztec West taking the top spot for demand from a range of buyers. The team worked on a number of deals in the business park, including:
- Acting on behalf of a private property company to acquire the freehold interest in 715 Aztec West, for a total consideration of £3m. The 17,475 sq. ft modern building was let to two tenants with one vacant floor, producing £317,514 per annum
- Acting on behalf of Barwood Capital, a real estate investment and development specialist, on the acquisition of Cascades 1 and 2, for a total consideration of £2.3m. The obsolete offices will be knocked down and replaced with a new 40,000 sq. ft industrial unit – Barwood Capital’s first asset for its Regional Property Growth Fund V
- Acting on behalf of Maybrook Properties, a private property company, HTC acquired 720 Aztec went for circa £2.5m. The property had just been let to Specsavers Ltd on a new 10 year lease
Ian Lambert, Partner at Hartnell Taylor Cook, who secured these deals, commented:
“Despite negative sentiment in the property press, it is pleasing to be involved with a number of sales and acquisitions in the Bristol out-of-town office market. Those investing in this market are a broad range of buyers, including, owner occupiers, property companies, Family Offices and developers, seeking added value opportunities, secure income streams or alternative use strategies.”
Chris Grazier, Partner at Hartnell Taylor Cook, commented:
“The office market has continued to flourish since the pandemic and these investments are a testament to how important offices remain within business strategies. The key for buyers is whether these offices have the potential to become high-quality, Grade A stock to offer tenants the best experience, as we continue to encourage workers back into the office.”
These deals are a testament to the sustained demand for out-of-town offices, despite difficult market conditions. Clearly, bricks and mortar offices are here to stay, and business parks still have a lot to offer the right buyer.
Get in touch with Ian Lambert, [email protected], if you would like to learn more about the investment opportunities available to you.