Finzels Reach, Bristol

The Asset at a Glance

By the end of the year, it is estimated that over 2,000 people will live or work at Finzels Reach. The plans for phase two of Finzels Reach would increase that total to over 3,000 people, with an investment value of £400m in total.
Investment Theme
Urban Asset Creation
Purchase Date
November 2013
Purchase Price
£38m via a loan purchase (phase 1 only)
Fund
Palmer Real Estate Value LP
Features
Acquired distressed debt in a 5.5 acre Bristol city centre site enforcing ownership Sold existing buildings comprising:
  • 113,000 sq. ft. Grade A office (25% leased at purchase)
  • 140 built private residential apartments (75 remaining for sale at purchase)
  • 55 affordable apartments (100% built and sold)
Built out or sold the following:
  • 168-bed hotel was pre-let to Premier Inn and then sold as a forward funding to AXA
  • 38 new apartments were speculatively built and largely sold off-plan prior to completion
  • 196 BTR apartments were constructed as part of a forward funding with Grainger Plc
  • A new bridge connecting the site to the City Centre
  • Speculatively built a new 95,531 sq. ft. Grade A office building and subsequently sold for £62.13m reflecting a 4.75% net initial yield
Purchase Rationale
  • Acquired debt during LPA receivership at deep discount to par
  • Major city centre mixed use regeneration site
  • Leverage day one equity to 7x GDV
Location
  • Finzels Reach,  E Tucker St, Bristol BS1 6EU