A Brace With DevSec
Posted by Mark on 4th Jun 2011
We're delighted to announce that we have exchanged contracts this week to acquire a landmark, mixed-use, building in Bristol in a second deal with our partners Development Securities plc.
Colston Tower is a building well known to anyone who as studied or worked in the city, because it's:
a)Very big (90,000 sq ft over 15 stories)
b)Bloody ugly/a masterpiece of brutalist architecture (delete as appropriate)
c)Right in the middle of the city
d)Next to a lot of bus stops
d)Has a couple of legendary restaurants on the ground floor
Despite the recession and the dearth of the secondary office space available in the City centre, it is 80% let, off rentals that give good scope for rental growth over the medium term as a result of some targeted CapEx.
We have paid LaSalle Investment Management a NIY of >10% which gives us a great cash on cash return, after some modest gearing, and some expectation of a little capital appreciation.
30% of the income is from retail/leisure, which is well within my area of expertise, now all I need to do is work out whether you zone the office space from the windows or the lifts?
Ellandi/Development Securities were advised by GVA.