AEW UK Core Property Fund (AEW) has announced the acquisition of the 25,800 sq ft Armourers House on Queen Charlotte Street, Bristol, for £7.25 million, reflecting a net initial yield of 6.48%.
The four-storey, freehold office building is let to The Secretary of State for Communities and Local Government, its status as a government entity giving investment grade covenant strength. The property also benefits from two small storage areas and secure parking for 22 cars.
The property is situated in a prominent corner position adjacent to Queen Square, the largest Georgian square outside of London and one of Bristol’s most prestigious office addresses. Additionally, Bristol Temple Meads Railway Station is within a 5-minute walk and access to the M4 and M5 Motorways is a short drive via the M32 and A4, granting the tenant excellent access to London.
Michael Shears, Executive Director at AEW, said: “Office take up in Bristol represented 80% of the annual 5-year average in 2020, one of the strongest levels of take up in 2020 outside London. With continued demand, a lack of supply in the market and limited new development opportunities, this acquisition should provide excellent opportunities to deliver long-term returns to our investors.”
