Bath property sells for £26.5million
UK construction and development company Watkins Jones & Son buys two Pinesgate buildings
In a property deal worth £26.5million, Europa Capital and Ediston Real Estate has sold Pinesgate office buildings in Bath to UK construction and development company Watkins Jones & Son. Europa Capital and Ediston Real Estate were both represented by Allsop.
The Pinesgate site currently comprises two detached buildings, Pinesgate East and Pinesgate West, which have been sold with planning consent. Located along the Lower Bristol Road, the two 1980s properties are now let to insurance provider Redde until 2025 at £1,583,929 per year. The site offers sustained rental income for eight years along with the opportunity to obtain vacant possession to redevelop the site. Planning consent has already been granted for a new, high-specification, Grade-A office comprising 112,246 sq. ft. over five floors at Pinesgate West.
The new office to be developed is expected to be highly attractive as there is no there is Grade-A office in Bath city centre at present. Once developed, the new office will be the first newly-built office in the city in 26 years. Apart from this, planning consent has been secured for a new, state-of-the-art education campus spanning 177,507 sq. ft. at Pinesgate East. The building covers nearly half of the site and has been pre-let to Kaplan Bath on a new 21-year lease to create Kaplan International College. The campus will comprise college facilities and integral student accommodation for 358 units.
The head of national investments at Allsop, Jeremy Hodgson said that the strong price achieved reflected Europa Capital and Ediston Real Estate’s excellent asset management and vision in obtaining such a major and valuable planning consent for the site. The opportunity now reflects a secure medium-term income stream coupled with an exceptional planning consent and part pre-let. Hodgson added that Bath boasts a strong local economy and is renowned as both a thriving business hub in the region and a centre for education excellence. As a result, this site benefits from excellent prospects for rental growth and good, long-term tenant demand.