Office investment sold for over £2.2 million in the South West
Acting on behalf of Broomford Holdings, our Capital markets team have sold the freehold investment of 300 Worle Parkway, in Weston Super Mare for £2.217,500 million.
The property is located at Worle Parkway, Weston Super Mare and is strategically located just off junction 21of the M5 motorway and next to Worle train station which provides regular services to Bristol Temple Meads.
The property totalled 18,324 sq ft (1,702.31 sq m) of offices designed for maximum flexibility, comprising an L-shaped mainly two, but part three storey office building. 92% of the passing rent was secured on the strong covenant of Suez Recycling and Recovery UK Limited until September 2024 and there is one small vacant suite of 1,168 sq ft (108.51 sq m). The passing rent was £194,906 per annum. The sale reflected a net initial yield of 8.27% after allowing for purchase costs.
The purchaser, Lewis Investments were advised by JLL.
Head of our capital markets team, David Ferris commented, “We’re pleased to have completed the sale of this property on behalf of our retained clients, Broomford Holdings. The majority of the property is let off a low rent of just over £11 psf compared to out of town offices in Bristol which are now achieving double that level. This combined with a number of office buildings nearby having recently been converted to residential use and little new space coming to the market means this property offers good potential for rental growth.
“The volume of office investments sold in the South West and in Particularly in Bristol in the last 12 months has been significantly lower than over the previous decade through a lack of properties being brought to market rather than a lack of demand. In this period we have only seen 6 out of town transactions and 8 in town deals.” The most significant transaction by far being the sale of Aurora by Palmer Capital to Royal London Asset Management for just over £62 million reflecting a net initial yield of 4.75%.