F&C Commercial Property buys Bristol office – F&C Commercial Property Holdings Limited, a subsidiary of F&C Commercial Property, has purchased a 56,059 sq ft prime office, One Cathedral Square, in Bristol for GBP33.5 million, reflecting a net initial yield of 5.0 per cent. The property is fully let to the strong covenants of the University of Bristol and Dyson Technology on a WAULT of 12.4 years to expiry and 7.6 years to break, generating rental income of GBP1,780,906 per annum. The purchase was funded out of the company’s existing cash reserves. Following the purchase, net gearing was 19.7 per cent.
Commenting on the purchase, Fund Manager Richard Kirby said “This acquisition complements the portfolio’s existing holdings and provides secure income that is backed by solid financial covenants, while also delivering an attractive yield. With current supplies of Grade A office space in Bristol at an all-time low and the city increasing in appeal to a broad range of commercial occupiers, we have confidence in the fundamentals supporting our ability to deliver both capital and income growth for our shareholders from this investment.”
FCPT : F&C Commercial Property buys Bristol office