Lloyds Banking Group has bought its offices at 10 Canons Way in Bristol, paying more than £65 million.
Knight Frank Investment Management sold the freehold interest via JLL on behalf of the Korean owner.
A sale at that price would represent a net initial yield of around 8.22%, according to ACRE Capital Real Estate's latest national office investment figures report.
The 176,000-square-foot building is leased to the bank with a weighted average unexpired lease term of 6.5 years.
A Lloyds Banking Group spokesperson said: “Earlier this year we successfully purchased our Harbourside office from the landlord. This underlines our commitment to Bristol as a key location for Lloyds Banking Group.”
The transaction is the third largest in the regional office markets so far this year, after Bank of New York Mellon's owner occupier acquisition of 4 Angel Square in Manchester for £114 million and Melford Capital's acquisition of Waverley Gate in Edinburgh for £77.3 million.
ACRE reports that in the first quarter in the Greater London, South East and regional office markets there were £629 million of sales in total in 36 transactions, down 23% on the five-yearly average. The adviser says the Iran war has had a significant impact on sentiment in the market.
JLL advised Knight Frank Investment Management.