Acquires Midland Bridge House, Bath

RNS Number : 1772M

Ediston Property Inv Comp PLC

05 May 2015

 

Ediston Property Investment Company plc

Acquisition -  Midland Bridge House, Lower Bristol Road, Bath,  BA2 3FP.

5^th May 2015

Ediston Property Investment Company plc (the "Company") announces that it has acquired an office property in Bath from a private investor for a purchase price of £4.39 million, funded from existing cash resources.

The recently-refurbished property extends to 18,500 sq ft over ground and three upper floors.  It occupies a prominent corner position fronting the A36 Lower Bristol Road. It is situated within the Bath City Riverside Enterprise Area, which is undergoing significant investment and development. 

The building is let to Withy King LLP, a firm of solicitors, for a term expiring in March 2023. The rent rises to £323,330 per annum, equivalent to £17.50 per sq ft, in March 2017, producing a yield of 7% at that point.  There is a rent review in March 2018.

Commenting on the transaction, Calum Bruce, Director of Investment at Ediston Properties Limited, the Company's Investment Adviser, said:

"Midland Bridge House provides a good-quality income stream, which has the potential to grow owing to the favourable supply and demand dynamics in the Bath office market.  Currently, the Grade A vacancy rate is estimated to be as low as 1%.  As part of the Western Riverside regeneration area the surrounding land is earmarked for development for a range of uses, which should further improve the fundamentals of this asset".

Contacts

Canaccord Genuity Limited                                                                 020 7523 8000

Will Barnett                      

Neil Brierley                     

Dominic Waters                              

David Yovichic  

Ediston Properties Limited (Investment Adviser)                    0131 225 5599

Calum Bruce                     

Danny O'Neill                  

R&H Fund Services Limited (Company Secretary)                    0131 524 6140

Martin Cassels                 

Tavistock                                                                                                    020 7920 3150

James Whitmore

Jeremy Carey

Notes to Editors

Ediston Property Investment Company plc is a UK real estate investment trust (REIT) with a listing on the Main Market of the London Stock Exchange. The Company launched in October 2014 with the acquisition of an initial £76.7m diversified portfolio of UK commercial properties. It invests in UK commercial real estate assets to achieve its objective of providing its shareholders with an attractive level of income together with the potential for capital and income growth. It seeks to acquire assets which offer a secure income stream, with unexpired terms in line with the market average, secured against good covenants. It will typically target assets which have a net initial yield in excess of 6.5 per cent.

 

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