Knight Frank - Temple Point Building, Bristol

Date: 01 Jul 2009

Bristol, UK - A recent investment deal worth over £16m displays all the signs of increased investor confidence in the market, according to leading property consultancy Knight Frank.

Legal & General Property, advised by Knight Frank, has purchased the Temple Point Building on Redcliffe Way for £16.1million. The property is currently let to Orange PCS Limited until 2021 subject to a break in 2017 at a rent of £1,520,000 per annum, reflecting a net initial yield of 8.93%. The building was purchased from Friends Provident Life Assurance, who was advised by King Sturge.

Steve Oades, associate at Knight Frank, said: "Aside from the security of the income, Temple Point has cracking fundamentals offering top quality office space in a great location and more on site car parking than any other office building in the city centre."

According to Knight Frank's Bristol team, the city is starting to see more investors looking at all sectors of the market, although they are generally being more selective than in recent years. Oades cites the nearby 2 Templeback East investment, a deal worth £26m, as another recent example of investors identifying prime investment opportunities, leading the market in the right direction.

Oades continued: "It's been a tough couple of years for commercial property investment, but there is certainly greater stability in the market and more investor interest for the right product as we approach what we believe to be the bottom of the cycle."

Related website: Knight Frank

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