The Secretary Magazine

UKCM sells Bristol office building for £14.5m

A Bristol city centre office building has been sold off for £14.5m. British real estate investment firm UK Commercial Property REIT (UKCM) agreed the deal with Tri7, a real estate investment and asset management firm.

UK Commercial Property REIT Ltd announced that it has sold its 67,000 sq ft office building in Temple Quay to Tri7, a value-add real estate investment and asset management firm.
The investment firm believes the property would benefit from an injection of cash for rejuvenation.

The office building is let to the secretary of state for Levelling Up, Housing & Communities until March 2025 and the sale price is in line with the building’s 31 December 2023 valuation.

Tri7 has capital backing to deploy up to £250m on town and city centre regeneration sites that offer bed-led property development opportunities.

Will Fulton, fund manager of UKCM 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 Shopping 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, and Tri7 was advised by Kimmre.