Birmingham’s largest new office investment deal of the year demonstrates strong appetite for high quality regional assets
RPMI Railpen and Nurton Developments have exchanged on Birmingham’s largest investment transaction of the year, with Railpen acquiring 2 Colmore Square and Cannon House in the city centre.
GVA and V7 Asset Management acted on behalf of RPMI Railpen, with CBRE representing the vendor, Colmore Square LLP (Nurton Developments).
Formed of two interconnected buildings, which offer contiguous 40,000 sq ft floorplates from the third floor upwards, 2 Colmore Square and Cannon House were purchased for approximately £95 million, representing a yield of 6.4% and capital value per sq ft of circa £320.
Situated at the head of Colmore Row, Birmingham’s professional and financial services heartland, the building is 95% let off an average rent of £21.50 per sq ft and provides approximately 300,000 sq ft of BREEAM Excellent, Grade A commercial space across seven upper floors, with retail accommodation at ground level.
Occupiers include Shoosmiths, Jacobs UK, Energy Systems Catapult, the Secretary of State, and Handelsbanken.
Anna Rule, Head of Property at RPMI Railpen, said:
“We are delighted to have exchanged on this significant Birmingham asset. The building’s proximity to the new HS2 Curzon Street station, the low rents and the asset management opportunities that exist provide long term opportunities for growth. This purchase meets all of our core investment themes and will help to meet our mission to pay members’ pensions securely, affordably and sustainably”.
Rupert Young, Development Director of Nurton Developments, said:
“We’re proud of what we achieved with the back to frame refurbishment of this significant asset. Having completed the vast majority of our business plan now is an appropriate time to recycle the capital and look for new value add opportunities“.
Damian Lloyd, GVA, said:
“This is a real coup for the market and further demonstrates that Birmingham is a location that can support significant deals such as this. This building represents a truly great asset and one that is reflective of the profile of Railpen as a major UK institution. We are naturally exceedingly pleased to have been able to assist them in the realisation of their strategy.”
Nick Woodward, CBRE, said:
“This deal is a great example of how a leading Midlands property company has taken a vacant office building and transformed it over a number of years into an institutionally acceptable asset, capitalising on the strength of demand for high quality Birmingham office investments.”
For more information contact Damian Lloyd at GVA on 0121 609 8223 or [email protected].