Technology park office building sold in multi-million pound deal
Nurton Development’s One Warwick Technology Park office building has been sold for £13.2m.
The 49,157 sq ft multi-let headquarters-style building is located on the 70 acre site near Junctions 13, 14 and 15 of the M40 motorway.
It was recently refurbished by Nurton to provide Grade A office accommodation over ground and two upper floors.
The building is fully-let to three principal tenants – Delphi Diesel Systems, Baker Hicks and Accenture – and currently produces a net rental income of £984,658.50 per annum.
Rupert Young, development director of Nurton Developments said: “We’re delighted with the sale of this value added opportunity, which performed exactly to business plan over a near three year period.”
Knight Frank acted on behalf of the local authority purchaser and JLL represented Nurton, in a deal reflecting a Net Initial Yield (NIY) of 6.99%.
Ashley Hudson, head of the Capital Markets team in Knight Frank’s Birmingham office, said: “One Warwick Technology Park offered our client a high-grade office building in a prime location with excellent covenant strength and with opportunities for tenant regearing.”
Allan Wilson, director capital markets in JLL’s Birmingham office, who originally acquired the offices for Nurton Developments in a JV with a private investor, added:
“JLL were delighted to be involved from the outset in such a successful project and we believe it underlines that add value opportunities still exist across the region despite the current strong market pricing.“