Bristol city centre’s landmark Colston Tower has been sold for £12.3m – earning its London-based owners a £2m profit since they bought it three-and-a-half years ago.
Property investment companies Development Securities and Ellandi bought the 15-storey office block in a 75:25 joint venture from the HSBC Pension Fund in June 2011 for £7.6m and have since invested in a major refurbishment of the building, which dominates Bristol city centre.
The new owner is London-based Resolution Property, a major investor in office, retail, residential and mixed-use schemes across Europe. 
Development Securities and Ellandi today said the sale had realised a £2m profit for them. The firms also jointly own Nailsea’s Crown Glass shopping centre.
Their improvements at Colston Tower allowed them to increase headline rental levels from £9.50 per sq ft to £14.50 per sq ft. Some 90% of tenants with lease expiries or breaks have renewed and the building has become one of central Bristol’s most-desirable business addresses.
The 63m (205ft) high building’s 15 floors include showpiece offices as well as retail units at ground level. New shop frontages on Colston Avenue and sustainable timber paneling have been installed as part of the facelift.
Occupiers include Lloyds Banking Group, Santander, NTT and Ikon Films.
Development Securities executive director Matthew Weiner said: “We have added significant value to Colston Tower during our ownership, improving the quality of the building and thus increasing rental values and improving occupancy levels.
“The profitable sale of this asset will allow us to recycle capital into further investment opportunities where we see strong potential to generate value.” 
Ellandi investment director Mark Robinson added: “We have executed and then exceeded our business plan for this investment showing that good asset management principles can be applied across different sectors to achieve outstanding returns.”
Colston Tower was designed in 1961 but not completed until 1973. The landmark clock was added in 1996. The building is named after Edward Colston, the eminent Bristol merchant, MP and philanthropist.
