Bristol-based developer Cubex together with funding partner Fiera Real Estate have sold Finzels Reach’s historic Fermentation Buildings to Mendip District Council for £11.9 million, reflecting a net initial yield of 5.43%.
The striking, newly renovated office space at the Fermentation Buildings, part of the rich brewing history at Finzels Reach, is let to high profile organisations Channel 4, Historic England, English Heritage, Outlaw and Ecosurety. The ground floor leisure space along Hawkins Lane, which runs through the heart of Finzels Reach, is now home to Bocabar’s new restaurant and bar and wine lounge and shop Le Vignoble.
The creation of the first phase of Finzels Reach on Bristol’s famous Floating Harbour has breathed new life into the medieval heart of the city, with the former brewery and sugar refinery site now home to a thriving new neighbourhood with 2,500 people now living and working in this new quarter.
The sale of Fermentation Buildings represents one of the final elements of phase one of Finzels Reach to be sold by Cubex and Fiera Real Estate with the estate now in the shared ownership of a collection of institutional and private investors. Hawkins & George, the new fully let build-to-rent apartments, were handed over to Grainger last year, and cutting-edge, green office building Aurora was sold to Royal London Asset Management. AXA forward funded the Premier Inn hotel and Bridgewater House was purchased by a private European investor.
Cubex now has its sights set on future development opportunities in regional cities and towns across the South West and Wales, whilst it will also be forging ahead with work on the second phase of Finzels Reach.
Peter Walford, director at Cubex, said: “This sale marks an important milestone for us in our journey to transform this once derelict city centre site into a vibrant new quarter providing high quality, unique places for people to live, work and socialise.
“It has been hugely satisfying to see Finzels Reach come into its own over the last year, with the neighbourhood now home to many residents and businesses, whilst also fast being recognised as one of the city’s new social hotspots.
“We are excited to be now pressing ahead with our plans for the next phase of Finzels Reach and looking ahead to future development opportunities.”
Savills and Osborne Clarke advised Cubex on the deal, whilst Cushman & Wakefield and Ashfords advised Mendip District Council.
Cubex, alongside Fiera Real Estate, started regeneration work at Finzels Reach in 2012 when the team stepped in to develop the site after a previous attempt went into receivership. This major mixed-use development combines the sensitive restoration of some of the existing and historic buildings, with high quality, striking new architecture and contemporary public realm.
Finzels Reach is now home to a mixed, balanced community, with new homes, a hotel, and workspace for the likes of Channel 4, Historic England, Simmons & Simmons, Barclays, EDF and Bafta-winning BDH. It is also a fast-emerging social hotspot, home to Finzels Reach Market, Left Handed Giant, Mission Pizza, Pacific Yoga, Café Matariki, Spicer & Cole, Bocabar and Le Vignoble, whilst the striking Castle Bridge links this historic area to Castle Park and the city centre.