One Brindleyplace sold in £37m deal – report
ONE of Birmingham’s offices – 1 Brindleyplace – has been sold in a deal reported to be worth £37m.
GLL Real Estate, a German fund manager, is understood to have completed the acquisition from Trinova Real Estate in a deal part advised out of Birmingham.
JLL represented Trinova Real Estate on the deal, with Colliers acting on behalf of GLL.
The deal is thought to represent a net initial yield in the region of 5.25% and is an indication of the escalating property values in the city centre.
Property website CoStar News said the German fund manager had made the off-market acquisition on behalf of its Luxembourg-based GLL Pan European Fund.
The 68,000 sq ft office block is let in its entirety to Deutsche Bank until 2028, the banking group has been based there since 2007, since when it has created a new trading floor – the first outside London.
Trinova originally acquired the office building – on behalf of its investors club – from British Airways Pension Fund in 2013 for what was thought to be around £30m; a deal which in itself reflected an initial yield of 6.25%.
The area around Brindleyplace is only expected to increase in value in the coming years, partly as a result of new developments in the area.
The site is close to the ICC – currently undergoing a £10m revamp, while it is also near the new Library of Birmingham. While recently announced for Arena Central is the building housing HSBC’s new retail bank.
Showing foresight, Brindleyplace owners Hines/Lone Star put their estate holdings on the market for £285m earlier this year.
Colliers and CBRE have been appointed to try and sell the five-strong office portfolio – which comprises Three, Four, Five, Six and Nine Brindleyplace – as the property firms look to maximise their investment.
