UK Commercial Property REIT has sold its 67,000 sq ft office building in Temple Quay, Bristol, to Tri7 for £14.5m.
The secretary of state for levelling up, housing and communities is currently lettting the property at 2 Rivergate, with the lease ending in March 2025.
The office is Tri7’s latest acquisition following its £10m purchase of the retail complex, Portswood Centre, in Southampton earlier this year.
Tri7 has capital backing to deploy up to £250m on town and city centre regeneration sites that offer development opportunities. Tri7’s value-add strategy includes converting assets to residential-led developments. It recently submitted a planning application to convert the former Mecca Bingo in Wood Green, N22, which it acquired in 2022, into a 623-bed purpose-built student accommodation scheme.
Will Fulton, fund manager of UK Commercial Property REIT at abrdn, said: “Although well located in Bristol, this property is close to the end of its economic life with a short lease left to run. Having worked on many options we believe this investment would most benefit from a significant injection of rejuvenation capital – a process that necessitates an extended period of no income.”
Samuel Castle, partner at Tri7, said: “In line with our focus on town and city centre regeneration sites, 2 Rivergate in Bristol provides a compelling opportunity for our value-add strategy.
“Following soon after our purchase of the Portswood Centre in Southampton earlier this year, we continue to be on the acquisition trail across the country where our significant level of dry powder, coupled with our expertise in unlocking value through asset management means we’re in a position to take on complex sites and deliver attractive returns.”
UKCM was advised by Joiner Cummings. Tri7 was advised by Kimmre.
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