Investec provides £13.7 million loan for first net zero carbon out-of-town office in Bristol

By Bridging Loan Directory 12th February 2024

Investec Real Estate (“Investec”) announces that it has provided Commercial Estates Group (“CEG”) with a £13.7 million investment loan, secured against its recently completed 1000 Aztec West office building in Bristol.

The facility refinances an existing development loan and is the first transaction between the two parties.

Completed in December 2023, the 73,000 sq ft Grade A office includes a 1,300 sq ft gym and wellness facility offering daily exercise classes to tenants.

The supply of Grade-A office space in Bristol remains highly constrained, with approximately three months of availability based on average Grade A take-up in the market.

The take-up of Grade A space in Q3 2023 was 32,000 sq ft, equating to a decade-high 41% of overall letting activity.

1000 Aztec West is the South West’s first net zero carbon out-of-town office development, achieving a BREEAM Excellent and EPC A rating.

An all-electric building, it is powered by renewable energy and boasts energy-efficient heating, cooling and lighting systems.

As well as saving some 1.7 million kg of embodied carbon coupled with its Net Zero in Operation performance, 1000 Aztec West is a game changer for out-of-office headquarters.

Aztec West is Bristol’s premier business park, which features a range of amenities including a 4* hotel, restaurant, café and extensive landscaping.

It benefits from excellent connectivity, positioned on the eastern side of Junction 16 of the M5 motorway and western side of the A38, approximately eight miles north of Bristol City Centre.

Ian Burdett at Investec Real Estate, commented:

“This loan reflects our conviction that high quality, thoughtfully designed and sustainable offices, located in catchment areas with compelling fundamentals, will be highly sought after and command the highest rents.

Offering city centre quality design, 1000 Aztec West is a unique proposition for occupiers that recognise how important the physical environment is in talent acquisition and retention.

This first transaction with CEG, a leading regional real estate investor and developer, aligns with our focus on establishing new borrower relationships, which is key to our continued loan book growth.”

Paul, Richardson, Investment Manager at CEG, commented:

“1000 Aztec West was redesigned with modern tenants’ key requirements in mind.

From environmental sustainability and data connectivity, to the wide variety of onsite facilities designed to maximise staff wellbeing, we have delivered city-centre specifications not seen in out-of-town Bristol before.

Investec’s loan shows a commitment to a creative type of lending and has provided a pathway that will allow the property’s value to be maximised.”