Bristol Grade A office scheme One Cathedral Square has been sold for £33.5m in a deal that property industry figures say reflects the strength of the city’s market but also the marked shortage of prime space.
The 56,000 sq ft three-storey building – which is fully let to the University of Bristol and Dyson Technology – was refurbished earlier this year at the cost of £7m. 
Originally occupied by Direct Line’s call centre and sited next to the Bristol Marriott Royal Hotel, it also achieved a record rent of £32.50 per sq ft last month when Dyson agreed its 28,720 sq ft letting.
The building has been acquired by BMO, the asset managers for F&C Commercial Property Holdings, from Castleforge Partners.
Castleforge Partners director Anthony Maxwell-Jones said: “We purchased One Cathedral Square two years ago with a view to add value by undertaking a significant refurbishment that would appeal to a high-quality occupier-base such as Dyson and Bristol University. The sale to BMO marks an end to this successful project and our business plan.”
Colliers International acted on behalf of the vendor with CBRE advising the purchaser.
Colliers International director, national capital markets, Richard Coombs said: “The Bristol office market is going from strength to strength and the sale of One Cathedral Square was not only one of the biggest deals of the year, but it was also carried out in just 11 working days following a very competitive bidding process. This is a reflection of the strong appetite we are seeing for quality office stock in the city and the value placed on high quality refurbishments and tenants.”
Head of offices at BMO Daniel Plummer added: “This acquisition complements the portfolio’s existing holdings and provides secure income that is backed by solid financial covenants, while also delivering an attractive yield.
“With current supplies of Grade A office space in Bristol at an all-time low and the city increasing in appeal to a broad range of commercial occupiers, we have confidence in the fundamentals supporting our ability to deliver both capital and income growth on behalf of our shareholders from this investment.”
The £7m refurbishment included a new front façade and complete replacement of the property’s mechanical and electrical engineering.
The project management team at property consultancy JLL’s Bristol office has been instructed on the two major new office fit-outs in the building.
The two contract wins cover the whole building with both Dyson and University of Bristol taking two floors each, comprising a combined 56,059 sq ft of office space. Both organisations are due to move into the building next spring.
The instructions represent the continuation of JLL’s longstanding relationship with the University of Bristol but is the team’s first instruction from Dyson. This is Dyson’s first long-term commitment in Bristol city centre.
The University of Bristol’s head of capital projects Andrew Casselden said: “We are delighted to have secured One Cathedral Square to continue to provide our staff with high quality office space and are pleased to have JLL on board.”
Adam Staite, associate director in JLL’s project management team in Bristol, added: “We look forward to bringing to both projects our extensive recent fit-out experience working with major clients and our own experience from our recent office move to 31 Great George Street.”
