Pension fund puts prime offices up for sale at £20m
A Solihull office building has been put up for sale by its pension fund owner at an asking price of more than £20m.
British Airways Pension Trustees has put the freehold of Lansdowne Gate in Solihull on the market at a guide price of £20.4m, which reflects a net initial yield of 6%.
The 60,999 sq ft (5,667 sq m) office building was comprehensively refurbished in 2015 and is fully let to National Grid Gas and Phoebus Software for a combined passing rent of £1.307m.
Almost 75% of the income comes from National Grid, with an average weighted unexpired lease term of 10.4 years across all occupiers.
The trustees are represented by real estate advisor Savills.
Stephen Benson, investment director at Savills Birmingham, said: “This is a rare opportunity to acquire a high quality office building with a secure income stream in Solihull town centre and we are therefore anticipating strong investor interest.”
National Grid relocated to the newly-refurbished property last year after moving out of its former offices in 31 Homer Road, Solihull.
The deal was seen as a further vote of confidence in Solihull’s commercial property market, which is one of those to benefit from the so-called ‘JLR Effect’, where strong demand from firms looking to be close to the vehicle manufacturer has pushed up prices.
