Melford Capital, which describes itself as a contrarian, value-oriented investor, has completed a deal to buy Bristol's EQ offices in a standout acquisition for the city and the wider regional investment market.
Market sources told CoStar News that Melford wrapped up its £103 million deal in late December. The vendor, CEG, instructed agents JLL to seek offers in excess of £116 million, reflecting a net yield of 6.3%, in May.
The deal is understood to be the largest office sale outside London, South East and the East of England in 2024. It beats the £78 million paid by Ashtrom Properties UK for Leeds' Central Square in October, the largest deal in that city for more than half a decade.
Other significant regional office sales to complete last year included Iroko Zen's circa £51.5 million purchase of 122 Waterloo Street in Glasgow, and Corum Asset Management's circa £46 million deal for 1 West Regent Street, also in Glasgow.
EQ, built by CEG in December 2023, comprises circa 200,000-square-feet of Grade A offices in the Temple Meads area of Bristol and is a 6-minute walk to its namesake station.
The building has the highest headline rent of the regional occupational markets, achieving £48 per square foot last year when law firm Knights signed for circa 6,000 square feet on the top floor. It kicked on rents from the previous high of £42.50 per square foot.
Other occupiers in the office include CBRE, Rathbones, Evelyn Partners, HSBC, Payment Sense and Birketts.
Melford Capital was approached for comment. JLL declined to comment.