Lothbury fund buys The Paragon office development in Bristol for £30m.
Located at the corner of Counterslip and Victoria Street, The Paragon provides six-storeys of retail and office space in Bristol. The convenient business location is within walking distance of Bristol Temple Meads train station and close to Bristol's floating harbour. The Paragon comprises 6,909 sq ft of retail accommodation beneath 68,489 sq ft of office space. The vendor was Invesco’s Real Estate UK III Fund, which sold the asset for £29.45m, with the benefit of income from several blue chip tenants. On the upper floors the BS1 office space is fully let to consultants from Mercer Ltd and Ernst & Young LLP, as well as the law firm Thrings LLP. While on the ground floor, Tesco occupies a retail unit. Lothbury Investment Management has secured the property at a net initial yield of 5.93%. LIM fund manager Mike Toft commented on the deal saying: "This is a superb purchase of a highly prestigious office building in arguably the best location in Bristol. The area has seen significant high quality development over the last decade” “The Paragon commands leading rents in the market and is an excellent asset for capturing rental growth."
The Bristol office development was designed by Stride Treglown architects and built by Leadbitter. The French-owned building contractor faced the challenge of excavating and sealing a basement below the water table. When completed in 2010, the project was awarded a BREEAM 'Excellent' rating for energy efficiency and sustainability.