GVA completes Great Charles Street sale at above asking price

PROPERTY consultancy GVA has completed the sale of the Great Charles Street Estate in Birmingham city centre to Dunedin Property Asset Management and Angelo Gordon.

While the sale price is confidential, it is understood to be above the asking price of £20m.

Situated on an island site adjacent to the Paradise development, the portfolio comprises seven buildings, including Civic House, Charles House, Lombard House, Galbraith House, Beaufort House, Lionel House and 154/155 Great Charles Street.  

The estate comprises a total net floor area of 330,000 sq ft across all buildings, which range from seven to 11 floors.

Reflecting the difficulty in letting secondary office space in the city centre, the properties are thought to be around 60% void.

If the terms of the agreement are correct then GVA will have secured a net initial yield of around 11.5%.

Great Charles Street estate’s location means it will be in an ideal position to take advantage of the changes to the Paradise Circus area. Work on the ambitious project is set to begin in the New Year.

Damian Lloyd, Director in the Investment team at GVA, said: “This was a very competitively fought sales process, with lots of viewings. We had an excellent response with a number of bids to consider, largely from developers and property companies.

“The sale of this portfolio underlines Birmingham’s reputation as an attractive investment location, enhanced through the large-scale development opportunities already underway in the city centre such as Paradise and Arena Central.”

GVA acted for Aviva Investors in the sale, with Dunedin and Angelo Gordon represented by LSH Birmingham.