Kames Capital has completed the sale of a Bristol office for £9.3m to Scotsgrove, a UK private investment company, representing a two-fold increase on its initial purchase price in 2013.
St James Court in Bristol, a city centre four storey office building spread across 36,415 sq ft, was originally bought by Kames in 2013 for £4.6m, equating to a capital value of £126 per sq ft.
The property is owned by Kames’ Active Value Fund who have invested in the building and let up virtually all of the vacant space. The headline rent has been increased by 30% during the hold period.
The property is multi-let to established tenants including BNP Paribas Leasing Solutions Ltd, Begbies Traynor Central LLP and Greggs PLC, with an unexpired term of 7.6 years to expiry.
The sale price equates to a capital value of £255 per sq ft and reflects a net initial yield of 6.5%.
Megan Garner, property fund manager at Kames Capital said: “We are delighted to have completed this transaction, having achieved our initial business plan, growing both rental income and capital value.
“This is an excellent outcome for our investors, demonstrating the benefits of pursuing an active value strategy.”
Colliers International acted for Scotsgrove whilst Kames were represented by Savills and ACRE.