Coleshill office scheme sold in off-market deal

A MULTI-LET office scheme in Coleshill has been sold in an off-market deal brokered by commercial property agency Phillips Sutton Associates and Darby Keye Property.

Bromwich Court, a 27,629 sq ft fully-let office building, has been purchased by David Samuel Properties. The terms of the deal have not been disclosed.

However, in a market where yields are 6-8%, the deal is said to represent good value.

Sam Sutton, director at Phillips Sutton, said: “Our client will benefit from a 10% initial yield in addition to rental growth and prospects for further asset management to enhance the value of the property further especially as the property is under-rented.

“With a lack of good quality offices available in this area, there is room for rents to grow from the level they are at now.”

He said the property was purchased for a price below the replacement cost of the building, which made it attractive to the buyer, who despite being based in the North West often deals in the Midlands market.

“Our client is based in Manchester but actively invests here in the Midlands for value added opportunities that we are experts in finding, particularly off market,” he said.

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