Bristol: Around the market – Bridgewater House

Deal type Office investment

Vendor: Palmer Capital and Cubex Land

Purchaser: Overseas investors

Size: 115,000 sq ft

Value: £56.3m

Yield :5.35%

Chosen by Andrew Main, investment director, Savills

When first acquired by Palmer Capital and Cubex Land in 2013, Bridgewater House was just 24% let. It was built to shell and a speculative, major fit-out was undertaken, helping to facilitate the letting of 80,000 sq ft to EDF and leading to the building now being fully occupied. What this deal really demonstrates is the impressive strategic approach at Finzels Reach, one which Palmer Capital and Cubex Land have been able to capitalise on through this sale of the investment. The sale to overseas investors is also reflective of the increasing international interest in Bristol, with our research showing 21% of 2015 deals being concluded with non-domestic investors. Overall, it is a really a significant and positive deal for Bristol, one of the largest over the past few years, also one of the biggest overseas investments, and an indicator of the strong demand from both investors and occupiers for prime office space in the city.