Former hospital acquired in near-£7m property deal
A property investment group has acquired a former hospital site in Birmingham in a deal worth almost £7m.
Knight Frank Investment Management has purchased Parklands Court in Rubery from Aviva Investors Management for £6.9 million.
The deal reflects a net initial yield of 4.95% – thought to be a record for an out of town office building in the West Midlands.
Parklands Court is located on Parklands, a 30-acre (12-hectare) development which is 8.5 miles south west of Birmingham city centre. The former hospital site now features five office buildings and residential housing development.
The 30,242 sq ft (2,810 sqm) headquarters office building was purpose-built for Compass Group Holdings in 1998. The FTSE 100 listed firm continues to occupy the property on a lease with almost 20 years unexpired, at an annual passing rent of £365,000.
Aviva Investors Management was represented by real estate advisor Savills.
Andrew Bull, investment director at Savills, said: “The long income investment opportunity generated significant market interest and ultimately resulted in a sale at what is understood to be the keenest yield on record for an out of town office building in the West Midlands.”
Knight Frank Investment Management was represented by Knight Frank.
