Bristol office tower snapped up by joint venture

Development Securities and Ellandi LLP acquire Colston Tower for £7.6m

Article posted: 21 Jun 2011

Development Securities has today announced the acquisition of office space in Bristol with the purchase of Colston Tower, a multi-let office building, in partnership with Ellandi LLP for £7.6m, reflecting a net initial yield of 10.08%. Under the terms of the partnership Development Securities will have a 75% ownership with Ellandi holding a 25% stake.

The building is a 15-story office tower with podium deck and is multi-let to 33 tenants with an occupancy rate of 85%. It was acquired from HSBC Pension Fund.

Matthew Weiner, Executive Director of Development Securities, said: "This latest acquisition continues our deployment of capital since July 2009 when Development Securities completed the first of its two recent £100m equity raises. Colston Tower provides a high income return and significant scope to improve the property through intensive asset management."

This is the second acquisition in as many weeks for Development Securities. Only last week it announced the purchase of retail and office space in West London, at a site on Kensington Church Street in Notting Hill, in a joint venture with Brockton Capital.

April saw another joint venture acquisition for the REIT, this time with the Cathedral Group. Together they purchased the former EMI/His Masters Voice headquarter offices in Hayes, West London, where they plan a radical £250m redevelopment.

Also earlier in the year in March, Development Securities acquired office space in Woking, Surrey at Elizabeth House and The Cornerstone.

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Posted by Sam