Aurora in Bristol sold for £62m
Contracts have been exchanged on the sale of Aurora, Bristol’s newly completed, landmark office building, to a major UK investment fund with completion to follow shortly, with over 85% of the state-of-the-art space now let at record rental levels.
The 95,000 sq ft ‘Grade A’ office building is part of Finzels Reach, the highly-regarded new quarter being created on Bristol’s waterfront in the heart of the city by leading South West developer Cubex, funded by Palmer Capital Development Fund IV, a programmatic venture managed exclusively on behalf of clients of CBRE Global Investment Partners (“CBRE GIP”).
Cubex, backed by Palmer Capital, has sold Aurora for £62.13 million to Royal London Asset Management, achieving a 4.75% net initial yield.
Aurora has consistently been able to secure record headline rents throughout its construction, being the only ‘Grade A’ office space developed this year in a city with limited supply.
With construction now complete, this striking new building is ready for office fit outs to begin and deals with three new tenants have been signed. The rent achieved on Aurora has now broken a new record, rising above the £35 per sq ft mark.
Financial services firm Parmenion, part of Aberdeen Standard Investments, and professional recruitment and consulting specialist Experis will join previously announced tenants law firm Simmons & Simmons and intellectual property specialist Mewburn Ellis LLP inside the glass-fronted building.
Parmenion is taking 31,233 sq ft on the third and fourth floors, and Experis is taking the ground floor rear suite of 5,002 sq ft. Both firms are relocating from within the city centre, providing a significant upgrade to their working environment.
Amdaris, a dynamic software development business, is lined up to take 3,200 sq ft at Studio A, the self-contained ground floor suite fronting Counterslip, leaving just one floor of 15,552 sq ft remaining that has attracted several enquiries.
Aurora is the only building outside London and one of just six in the UK to achieve the BREEAM ‘Outstanding’ environmental award under the new, toughest rating scheme. It also holds a LEED Gold sustainability standard and a Platinum Wired Score accreditation, the highest rating for connectivity and digital infrastructure.
Peter Walford, director at Cubex, said: “Our commitment to delivering a first class, highly sustainable office building in the heart of the city has been instrumental in helping us attract an excellent mix of quality tenants, and to consistently push rental levels to record highs. We are therefore delighted that Royal London have recognised these attributes and chosen to purchase our landmark Aurora building.”
Steve Wright, director at Palmer Capital commented: “We are delighted to conclude a successful business plan, delivering a high quality asset in Bristol, and outstanding performance for the fund.”
Savills acted for Cubex and Palmer Capital. Knight Frank acted for Royal London Asset Management.