10 Canons Way, Harbourside



  • Bristol is the regional and business capital of the South West of England and one of the UK's major commercial and financial centres. It is the UK's 5th largest city with an urban zone population of 1.6m residents
  • Harbourside is Bristol's premier mixed use development, home to office occupiers including Lloyds and CMS Cameron McKenna and the headquarters of Triodos Bank, Hargreaves Lansdown and the Environment Agency
  • 10 Canons Way is an imposing five storey landmark office building completed in 2007 providing highly specified Grade A office accommodation
  • A total net internal floor area of 176,611 sq ft*, arranged over highly flexible floor plates ranging between 30,806 sq ft and 36,401 sq ft and an excellent city centre parking ratio of 1:1,859 sq ft
  • Let to the investment grade covenant of Scottish Widows Limited for a further 16.75 years and subject to restrictions on assignment
  • A topped up rent from completion until November 2017 of £5,046,093 per annum and subject to one further fixed rental uplift to £5,709,191 per annum in November 2022
  • Bristol's occupational market has improved significantly over the past two years reaching a new prime headline rent of £28.50 per sq ft. Current availability is at an all-time low, with 1.3 years' supply of Grade A accommodation and no Grade A developments currently on site
  • Bristol has witnessed a material change in availability over recent years, with the implementation of PDR together with change of use for student accommodation reducing office stock by around 900,000 sq ft
  • The building has a BREEAM rating of Excellent
  • Freehold
  • We are instructed to seek offers in excess of £92,000,000 (Ninety-Two Million Pounds), subject to contract, reflecting a net initial yield of 5.18% assuming purchaser's costs of 5.80%, a reversionary yield of 5.87% in November 2022 and a capital value of £521 per sq ft

* In accordance with the RICS Code of Measuring Practice (6th Edition).



Bristol is the 5th largest conurbation in the UK and the capital of the South West. It has an estimated population of around 550,000 and a larger urban zone with an estimated 1.6 million residents. Bristol is amongst the most attractive, successful and culturally prestigious cities in the UK, enjoying a rising profile within Europe and beyond.

According to the 2011 Census, Bristol has a high proportion of working aged people (71%) and this figure has increased by 21% since 2001. Furthermore, Bristol has a higher percentage (54%) than the UK average (51%) in socio-economic groupings of higher, intermediate and supervisory managerial, administrative and professional groups.


The Bristol economy showed great resilience during the recession and has now shown growth with per capita GDP 40% higher than the national average. The 2014 Centre for Cities Report confirmed the Bristol city region's status as one of the strongest performers outside of London on a range of economic indicators, and it was the only city region to constantly outperform the national average.

The city's success is based on its world class knowledge economy based in aerospace, defence, engineering, ICT & electronics, financial services, media, creative and environmental industries, along with the global reach of its two universities.

Bristol has developed a strong service sector and has become one of the largest employment bases for the banking, finance and insurance sectors outside London. It is a popular relocation destination, supported by a flourishing professional services sector and large business relocations.


The city benefits from two outstanding universities, the University of Bristol and the University of the West of England. These contribute to Bristol's skilled labour pool, which has one of the highest retention rates in the UK.

Bristol has a long association with the green movement and is proud of its status as the European Green Capital 2015, the first UK city to have been awarded the accolade.


Bristol City Centre has seen a significant amount of new development over the last decade, including:
  • Harbourside
    A high quality mixed use waterfront development incorporating c1.2m sq ft of accommodation.
  • Finzels Reach
    A high quality mixed use redevelopment of the former Courage Brewery site providing Grade A offices, residential, hotel and leisure accommodation.
  • Temple Quay
    A predominantly office led development providing c2.0m sq ft.
The city's retail offer has been substantially improved with the completion of Cabot Circus, a 1m sq ft shopping centre extension which has enhanced the existing Broadmead area. The 725,000 sq ft Cribbs Causeway shopping centre anchors Bristol's out of town retail offer.

Works have now commenced on the £90m 12,000 seater Bristol Arena which is anticipated to bring £150m into the regional economy and create 400 jobs. It is due to open in December 2017.

Further information about Bristol is available at www.investinbristol.com


Bristol has two principal railway stations. Bristol Temple Meads is located centrally and within a 15 minute walk of the property along the Brunel Mile. Bristol Parkway is located to the north of the city centre and both provide regular direct intercity services to the UK's major cities.

Communication links between Bristol and the rest of the UK are due to be significantly improved by way of new infrastructure development. This includes the £2.8bn electrification of the rail line to London, which is set to complete in 2018 and will reduce journey times by around 20 minutes.

Network Rail's vision is to make Bristol Temple Meads a world-class railway hub with outstanding station facilities and train connectivity.

Bristol International Airport lies 8 miles south of the city centre and is serviced by a dedicated coach link. It offers scheduled flights to 111 destinations throughout the UK and to all of the major European economies, including Spain, Italy, Germany, France and Holland. The airport was accredited as the World's Most Punctual Airport in 2014 and now serves over 6.76 million passengers each year, meaning it is one of the fastest growing regional airports in the UK.

Bristol is located 118 miles west of London at the junction of the M4 and M5 motorways. The city centre benefits from excellent road communications being only 4 miles from the M4/M5 intersection. The M4 is the east-west axis from London to Cardiff, whilst the M5 is the north-south west axis from Birmingham to Exeter.

The M48 motorway and Second Severn Crossing provide strong road links to Cardiff and South Wales and the M32 motorway spur links the M4 to Bristol city centre.



Harbourside is located on the west side of the city centre and forms part of Bristol's premier mixed-use development. It covers some 16 acres and has been predominantly developed by Crest Nicholson over the past 15 years.

10 Canons Way is situated at the heart of the development and overlooks Bristol's Floating Harbour, with prominent frontage to Canons Way. The property is close to the popular pedestrian and commuter path Brunel Mile, which runs from Bristol Temple Meads railway station to Harbourside and the SS Great Britain via the historic Queen Square.

The Harbourside district is situated around the old dockland area of Bristol and has been significantly redeveloped to provide a mixed use development incorporating high value residential, leisure and a series of high profile Grade A office buildings. It is one of the key business districts within the city, home to a number of office occupiers, including the headquarters of the Environment Agency, Triodos Bank and Hargreaves Lansdown. It is fast becoming recognised as a headquarter location and centre for the financial services sector and employs in excess of 6,000 people and has approximately 1,500 residents.

The Crest Nicholson development, which is in its final phase, comprises around 800 apartments, an 182 bed Ibis hotel, several high quality restaurants and circa 330,000 sq ft of Grade A office accommodation (Lloyds Banking Group, Hargreaves Lansdown and CMS Cameron McKenna).

10 Canons Way is one of three large office buildings occupied by Lloyds Banking Group on Harbourside, where a total in excess of 4,000 of its staff are employed. The other office buildings are Canons House Phase I and II.

Harbourside also offers a wide variety of leisure amenities including @Bristol, Bristol Aquarium, Millennium Square, iPlay Golf, Pure Gym, Rainbow Casino and the Bristol Art Centre. In the immediate vicinity are Bristol Cathedral and City Hall, together with Brunel's world famous SS Great Britain, City of Bristol College, Peros Bridge, Queen Square, The Theatre Royal, Hippodrome and Colston Hall.

The affluent and picturesque district of Clifton is easily accessible from Harbourside with its numerous high quality restaurants, bars and retail outlets, along with the University of Bristol.

The location also provides a unique lifestyle choice, balancing work and an unrivalled waterside, mixed use environment for staff with bars, restaurants, leisure and residential.


10 Canons Way

10 Canons Way is an impressive fully glazed, five storey landmark office building developed by Crest Nicholson plc and completed in 2007. Its attractive design incorporates a large glazed atrium and extensive glazed waterfront elevation, which provides bright and highly specified Grade A office accommodation.

The property benefits from some of Bristol's largest office floor plates and naturally lends itself as an excellent headquarters style office facility, particularly for occupiers seeking a relocation outside of London. The excellent divisional flexibility of the floor plates also allows for multiple occupation.

10 Canons Way is arranged over basement, ground and four upper floors and provides 176,611 sq ft of office accommodation. The building is wrapped around a large central atrium providing excellent natural daylight to the office accommodation with open balconies. The ground floor is principally used for reception, meeting, conference and training rooms, together with a gym and an impressive café/dining area with a capacity for 330. The upper floors provide open plan offices with breakout areas and fourth floor boardroom.


The specification includes:
  • Impressive full height glazed atrium
  • Six 13-person passenger lifts serving each floor & service lift
  • Chilled beam air-conditioning system
  • Metal tiled suspended ceilings
  • Recessed lighting LG7/2005
  • BREEAM rating of Excellent
  • Fully DDA compliant
  • Full access raised floors (400 mm void)
  • Secure bike racks (240 bikes)
  • Shower facilities and lockers
  • CCTV security system
  • Typical floor to ceiling heights of 2.8m
  • Concierge style reception
  • Southern glazed elevation with brise soleil
The property provides 95 secure basement car parking spaces, 14 of which are designated disabled spaces and provides an excellent ratio of 1: 1,859 sq ft. There are 38 motorcycle spaces. Full details of the specification are available upon request.


A measured survey has been undertaken by Plowman Craven, which is provided within the data room and is capable of being assigned and relied upon by the purchaser.

The property has been measured in accordance with the new RICS Property Measurement (1st Edition), which incorporates the new International Property Measurement Standards (IPMS).


10 Canons Way is held freehold under title number L81158 as delineated in green on the situation plan.


10 Canons Way is let to Scottish Widows Limited (Company No: 03196171) (formerly Clerical Medical Investment Group Limited) by way of a fully repairing and insuring lease expiring 1 November 2032, providing an approximate unexpired term of 16.75 years.

The contracted passing rent is £4,460,011 per annum, equating to £25.67 per sq ft assuming a half rental rate is applied to the reception and atrium area. The lease is subject to fixed rental uplifts to £5,046,093 per annum (£29.04 per sq ft) on 2 November 2017 and £5,709,191 per annum on 2 November 2022. The rent is not reviewed in 2027.

The vendor proposes to top up the rent to £5,046,093 per annum from completion until the fixed rental uplift in November 2017.

The lease is subject to restrictions on assignment, most significantly where the proposed assignment will have a materially detrimental effect on the value of the landlord's reversionary interest. Assignment cannot be restricted where it is to a Government or Local Authority covenant, or to a company that is listed within the FTSE 100 or with a Standard & Poors rating of A+ [or better].

Covenant Information

Scottish Widows Limited
Scottish Widows Limited is one of the UK's leading providers of pensions and investments, with funds under management totalling £22.9bn as at December 2014, having increased from £21.9bn in 2013. Products and services offered by them include providing individual pension plans, investment bonds, collective investment accounts and investment ISAs.

In January 2009, Scottish Widows Limited (then Clerical Medical Investment Group Limited) became part of the Lloyds Banking Group (LBG), one of the largest financial service providers in the UK. It contributes to the Life Insurance results within LBG's Insurance Division, which it deems to be a core but significantly under-served need for its customers.

Scottish Widows Limited, part of Scottish Widows Group, has been allocated the following independent credit ratings, all of which are regarded as investment grade:

Moodys: A2
Standard & Poors: A

Dun & Bradstreet provide the tenant with a credit rating of 5A1, representing a minimum risk of business failure.


The property is not subject to an option to tax and as such VAT will not be payable on the purchase price.


Prime headline rents in Bristol now stand at £28.50 per sq ft following lettings to KPMG and Handlesbanken at 66 Queen Square and to EDF at Bridgewater House, all at £28.50 per sq ft. These are in addition to the lettings of 28,376 sq ft and 16,796 sq ft to PwC and Arcadia respectively at 2 Glass Wharf at £28.00 per sq ft. As a result, quoting headline rents in the city now range from £29.50 per sq ft to £32.50 per sq ft.

Rents within Bristol compare favourably with the other Big 6 regional office centres, with only Leeds home to lower headline levels. However, Bristol is the only major regional office market where rents are inclusive of car parking and so analysing Bristol on a like for like basis provides for a true headline rent exclusive of car parking of £27.50 psf, equalling the lowest rent within the Big 6 (assuming a rental rate of £2,000 per car parking space per annum and a car parking ratio of 1:2,000 sq ft).

Looking ahead, Cushman & Wakefield Research predict that Bristol will be subject to significant rental growth as a result of the city's current occupational market dynamics and we anticipate prime headline rents will reach £34.00 per sq ft by 2020. With anticipated growth of 19%, the city will therefore significantly outperform every other Big 6 regional office market in the same period. The market is currently seeing rapid growth within the Grade B office market, where rents are now reaching £24.00 per sq ft to £25.00 per sq ft.

There are a range of Grade A requirements in the market which remain unsatisfied, along with a large number of lease events between 2016 and 2018, where occupiers will look to move and upgrade their accommodation as business sentiment continues to improve in the regional economies. Bristol is an extremely well balanced economy with demand from business and financial services, TMT and public sector occupiers.

The Harbourside area is very well placed to benefit from any relocations as witnessed by the moves of Hargreaves Lansdown, Triodos Bank and the Environment Agency. This, along with the high quality of the office accommodation, diminishing supply and no new developments on site, has created a strong base for rental growth.

2014 saw a near record take-up for Bristol city centre at 836,858 sq ft, the highest achieved since 2007 and the third highest total in 25 years. This take-up included approximately 400,000 sq ft in Q4 2014, which was a record for the city. 2015 was more in line with the 5 year average, standing at 534,647 sq ft.

Around 900,000 sq ft of office stock has been taken out of the market as a result of conversions to alternative uses during the past few years. This is largely due to the application of Permitted Development Rights (PDR) legislation and developer demand for purpose built student accommodation.

Take-up by sector in 2014/15 changed notably with the professional sector making a comeback and accounting for 30%. The upturn in the professional sector was led by a number of significant lettings, namely KPMG, PwC, Mapfre Abraxis, Arcadis, ADP and Parsons Brinkerhoff. However, the city's largest transactions were at Bridgewater House and 1 Rivergate where EDF and OVO Energy acquired 81,202 sq ft and 69,716 sq ft respectively.

Availability within central Bristol has fallen notably over the last three years and most significantly during the past 18 months as a result of an upsurge in take-up, an increase in Permitted Development Rights backed development, developer demand for purpose built student accommodation and a limited amount of development.

Total availability has dropped from around 1.45m sq ft at the end of 2012 to 818,000 sq ft by the end of 2015, representing 6.5% of total office stock, of which nearly half is Grade B quality space. The most significant reduction has been within the Grade A and high quality Grade B office markets, despite the completion of two Grade A buildings last year.

Grade A supply continues to decrease and currently stands at around 147,103 sq ft, representing 1.18% of total stock and with approximately 23% of this under offer, which will reduce further during Q1 2016.

Occupiers looking to relocate or enter the market therefore struggle for choice and there are only two buildings currently capable of providing 30,000 sq ft or more: Templeback and 2 Glass Wharf.

Further erosion of availability is anticipated through PDR led schemes and occupier take-up, coupled with no new developments currently on site or likely to be completed before late 2017. This context, balanced with one of the lowest levels of available Grade A specification accommodation, is putting significant upward pressure on Grade A headline rents and reducing incentives.


The UK commercial real estate investment market saw £62bn of transactions in 2015, 4% ahead of 2014 volumes and the highest annual total ever recorded. Offices accounted for approximately 43% of all investment and the sector's popularity is driven by its strong performance, where IPD total returns for 2015 were 18.2%, out-performing all other mainstream property sectors.

Regional office investment transactional volumes totalled £4.9bn in 2015, driven by the higher yield returns available to investors outside of the capital and South East, a trend which is anticipated to continue this year and buoyed by positive occupational market dynamics. Assets let on long leases to investment grade covenants are rare.


The UK commercial property investment market continues to be viewed as a safe haven for investment, particularly in light of recent global political and economic instabilities, along with the performance of UK commercial real estate versus other asset classes. Evidentially, the IPD All Property Index return for the 12 months to December 2015 was 13.8%, in stark contrast to the -4.2% returned by the FTSE 100 Index and -24.3% by the Bloomberg Commodity Index.

Investors continue to target UK commercial real estate and as such the UK accounted for 34% of all European commercial property investment in 2015.

A combination of slowing GDP and benign inflationary pressures have resulted in expectations that interest rates will remain lower for longer. As such corporate bond and gilt rates are expected to follow suit, meaning real estate returns and associated income yields continue to look exceptionally attractive to investors.


An Energy Performance Certificate is available upon request and provides a C 74 rating.


We are instructed to seek offers in excess of £92,000,000 (Ninety-Two Million Pounds), subject to contract for our client's freehold interest.

A purchase at this level reflects a net initial yield of 5.18% on the proposed topped up rent at completion of £5,046,093 per annum, assuming standard purchaser's costs of 5.80% and a reversionary yield of 5.87% in November 2022. This reflects a capital value of £521 per sq ft.

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