Ediston Property Investment Company plc (the “Company”) announces that it has acquired an office property in Bath from a private investor for a purchase price of £4.39 million, funded from existing cash resources.
The recently-refurbished property extends to 18,500 sq ft over ground and three upper floors. It occupies a prominent corner position fronting the A36 Lower Bristol Road. It is situated within the Bath City Riverside Enterprise Area, which is undergoing significant investment and development.
The building is let to Withy King LLP, a firm of solicitors, for a term expiring in March 2023. The rent rises to £323,330 per annum, equivalent to £17.50 per sq ft, in March 2017, producing a yield of 7% at that point. There is a rent review in March 2018.
Commenting on the transaction, Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “Midland Bridge House provides a good-quality income stream, which has the potential to grow owing to the favourable supply and demand dynamics in the Bath office market. Currently, the Grade A vacancy rate is estimated to be as low as 1%. As part of the Western Riverside regeneration area the surrounding land is earmarked for development for a range of uses, which should further improve the fundamentals of this asset”.