Cube’s commercial elements sold in undisclosed deal

THE commercial elements of Birmingham’s iconic The Cube have been sold in an undisclosed deal.

Aruna Projects has sold the assets to EPISO 3, a fund advised by Tristan Capital Partners. It said the price reflected a net initial yield of 8.42%.  

Aruna, which was represented in the transaction by Savills, has retained the residential elements of the building and will continue to market them.

Aruna, represented by PwC as administrators of Alan Chatham’s Birmingham Development Company, completed and delivered The Cube as one of Birmingham’s most iconic new buildings in 2011.

Commenting on the sale, Mark Batten and Matthew Hammond of PwC, said: “We are delighted to have been involved in this successful construction and property project, and to conclude a successful disposal of a part of the property in a challenging market is testament to the quality the market sees in underlying assets.”

Jonothan Holmes, director of investment at Savills, added: “The Cube is one of the most striking buildings in both Birmingham and the wider regional markets and boasts a strong tenant mix across a broad range of uses.

“We had a very high level of interest from both UK and overseas investors and are pleased with the price achieved for our client, illustrating once again that the investment market in one of the UK’s leading regional cities, remains very strong for well let city centre buildings.”

The 25-storey mixed-use development was designed by MAKE Architects and features 244 luxury apartments, plus retail, leisure – including health and fitness, hotel and restaurants in addition to 111,500 sq ft of Grade-A office space.

Office occupiers include The Highway’s Agency and the Law Society, plus restaurateurs Marco Pierre White and Rodizio Rico.

Tristan Capital Partners was represented by Capital Real Estate Partners.