AEW UK Core Property Fund (AEW) has acquired Armourers House on Queen Charlotte Street, Bristol, for £7.25 million, reflecting a net initial yield of 6.48 per cent.
The 25,800 sq ft 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.
It 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.
Bristol Temple Meads Railway Station is within a five-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.”
Image source: AEW UK
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