A large building near Temple Meads station has been snapped up for a whopping £73million.
Temple Quay House has been bought by London-based investment firm Alpha Real Capital and is currently being used by a Government department as office space.
The Secretary of State, Communities and Local Government has been in the building since 2001 and has just signed a lease extension to stay there until 2037.
The 154,000 sq ft office is set to undergo improvements worth £15million, which is being paid for by the Government, according to Business Live.
”The length of the UK Government’s lease, approaching two decades, the strength of the Government’s commitment to the building together with the significant under-renting of the building and five per cent reversionary yield strongly underpin the property’s income security," said Phillip Rose, chief executive of Alpha Real Capital.
"Our focus is on secure income backed by real assets,"
The investment company bought the office for one of its long-lease property funds and the deal was completed within 12 working days of the property being put under offer and funded with equity.
The property's lease has a fixed 16 per cent rental increase in 2026 and then an open market review in 2031.
Alpha has more than £3billion of assets under management, which are primarily focused on long-lease property and freehold ground rents.
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