DevSecs and Ellandi buy Bristol office tower
Posted by Property Week on 21st Jun 2011
Development Securities and Ellandi have bought a Bristol office tower for £7.6m, a 10% yield.
The acquisition is the duo’s second joint venture following the purchase of the Crown Glass shopping centre in Nailsea almost two years ago.
With a weighted unexpired lease term of 4 years, the joint venture will look to asset manage the building and refurbish it to increase value.
Under the terms of the partnership Development Securities will have a 75% ownership with Ellandi holding a 25% stake.
The building is a 15-storey office tower with podium deck and is multi-let to 33 tenants with an occupancy rate of 85%.
The building was acquired from HSBC Pension Fund, and completion was financed from equity, with a view to gearing in due course.
Matthew Weiner, Executive Director of Development Securities, said: “This latest acquisition continues our deployment of capital since July 2009 when Development Securities completed the first of its two recent £100 million equity raises. Colston Tower provides a high income return and significant scope to improve the property through intensive asset management.”
Mark Robinson, partner of Ellandi LLP, added: “We are delighted to enter into our second joint venture with Development Securities following our successful acquisition of Crown Glass Shopping Centre in Nailsea 21 months ago.”
Source: Property Week