Orchard Street Investment Management has completed the acquisition of City Business Park, a prime multi-let industrial estate in central Bristol for £30 million. The asset was acquired from LaSalle Investment Management on behalf of St James’s Place Property Unit Trust.
Located within close proximity to Bristol’s city centre, the freehold estate comprises 19 units totalling approximately 118,000ft2 across a six-acre site. All the units are let or under offer at a very low passing rent of £7.80/ft2 overall, offering strong rental growth prospects when compared to rental values in the area in excess of £12/ft2.
City Business Park is one of Bristol’s premier estates and benefits from excellent transport connectivity. It is less than 1.5 miles east of the city centre and abuts densely-populated residential areas, perfectly-situated for last mile delivery. In addition, the estate is 5.5 miles south-west of the M4 motorway and nine miles south-east of the M5 motorway, offering rapid access to the UK’s wider distribution network.
“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,” commented Harry Buxton, Acquisitions Manager at Orchard Street. “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.