UK charities and public sector investment manager CCLA has acquired a waterfront office property in the city of Bristol from Aviva Investors for £35 mln (€39 mln), representing a net initial yield of 5.15%.
The asset, dubbed Kings Orchard, has been acquired on behalf of the local authorities mutual investment trust.
Comprising some 89,010 ft2 (8,270 m2) of space, the office let in its entirety to Bevan Brittan LLP, a UK top 100 national law firm, with eight years unexpired, generating an annual income of £1,926,357.
The next rent review is due in March 2022 and the investment offers asset management opportunities to further enhance the value of the building, according to Aviva's advisors, CBRE.
Kings Orchard is located close to a number of major new office developments in the city in a commercial location where rental levels have seen significant uplift, the real estate services firm added.
CBRE advised Aviva Investors and Hartnell Taylor Cook advised CCLA, representing the local authorities mutual investment trust.