Landlords in Bristol are hoping for a big end to the year for the investment market after putting an additional £95 million of prime offices on the block in two sales.
The city has already seen CEG's EQ go up for sale this year, with the vendor quoting around £116 million, or a net yield of 6.35%. The building broke regional headline rents after securing Knights at £48 per square foot in May.
Another big-ticket asset has been added to the list, with 10 Canons Way, the Bank of Scotland's headquarters in the city, hitting the market.
Market sources told CoStar News that Knight Frank Investment Management, which manages the investment on behalf of a South Korean investor, is looking for offers in the region of £70 million for the Harbourside property.
It has recently undergone a £15 million makeover, after the tenant, which occupies the whole building, consolidated its operations in the city. Bank of Scotland has 8.1 years left on its lease at the BREEAM ‘Excellent’ building.
The landlord has instructed JLL to sell the property, with the quoting price reflecting a net yield of around 8%. CoStar data shows the owner paid Topland Group £95.5 million for the asset in November 2017, reflecting a 5.15% net yield.
Bristol's 10 Victoria Street is the second larger office investment being sold after going through its own £5.5 million refurbishment. It is being sold by Northwood Investors, which is looking for bids in the region of £25 million, reflecting a net yield of circa 6.75%, according to market sources.
The office to the south of Castle Park is let to multiple tenants, including insurance and asset management giant Allianz, along with Schroders and LSH, and comprises 47,732 square feet. JLL and Knight Frank are instructed.
CoStar data indicates that Northwood acquired the property for £12,650,000 in July 2015, reflecting a net yield of 6.67%. Refurbishment works at the scheme included the installation of a new reception and a new VRF heat pump system.
The properties will add fresh impetus to the Bristol investment market in the final quarter, with the city seeing £86.3 million of offices change hands in the first half of 2024, according to analysis from JLL. The listing of 10 Canons Way and 10 Victoria Street adds to a number of offices which could yet sell by the end of the year.
Along with EQ, another larger property on the market is Bristol's tallest office, Castlemead, with that property being marketed by CBRE on behalf of receivers for £27.5 million.