DevSecs/Ellandi buys in Bristol
Posted by CoStar on 21st Jun 2011
Development Securities and Ellandi have bought Colston Tower in Bristol for £7.6m, a 10.08% yield.
The office tower is multi-let to 33 tenants with an occupancy of 85%. DevSecs will have a 75% ownership with Ellandi holding the remaining 25% stake.
The 15-storey building was bought from HSBC Pension Fund, which bought the building in 2004.
Ellandi was set up in early 2008 by Morgan Garfield, previously head of UK property finance at Deutsche Bank, and Mark Robinson, formerly managing director of Oracle Estates, to capitalise on the fallout of the property downturn.
This is the group’s first office acquisition, having previously invested in retail assets.
Matthew Weiner, executive director of DevSecs, said: "This latest acquisition continues our deployment of capital since July 2009 when Development Securities completed the first of its two recent £100m equity raises. Colston Tower provides a high income return and significant scope to improve the property through intensive asset management."
Ellandi/DevSecs were represented by GVA; Knight Frank represented the vendor.