LGIM Real Assets (Legal & General) announces on behalf of its UK Property Fund that it has completed the acquisition of Quayside Bristol from DAS and ERGO for £27.75m.
Following the UK Property Fund’s launch in 2006, the Fund has grown from £100m to over £3.2bn today as it continues to see steady capital investment from retail investors.
Quayside is a collection of three office buildings situated on the waterfront in the established office location of Temple Quarter. The buildings are just a short walk from Temple Meads station, an increasingly important draw to occupiers. This deal follows the recent acquisition of the Iron self-storage portfolio, its landmark self-storage deal as the Fund continues to diversify its holdings and recycle its capital into more operational and alternative assets.
The freehold sale and continued leasehold operation by DAS have been concluded as part of the long term strategy of the business.
Matt Jarvis, Senior Fund Manager of the UK Property Fund at Legal & General, said: “This is an excellent buy for the Fund. The Bristol office market is currently undersupplied and has strong rental growth prospects as a result of this undersupply. The building also benefits from flexible floor plates which are in demand in the City. The combination of these strong property fundamentals and good micro-location will make this a strong performing asset for our investors as we refurbish and upgrade them over time. We have recently undertaken a similar exercise at The Landing in Redcliff Quay and have been very pleased with the level of tenant interest for modern, stylish, well connected assets in attractive city centre settings.”
Legal & General is already an active investor into Bristol, delivering Build To Rent homes and forward funding 3 Glass Wharf for HMRC’s new hub. Legal & General is now also in active discussions to deliver further mixed-use regeneration schemes in Bristol, including Bristol Temple Island, to deliver further local employment, housing and economic growth.
Knight Frank acted for Legal & General on this deal and Cushman Wakefield acted for DAS and ERGO.