A KEY commercial building in the heart of Birmingham city centre has been sold for £17.5m.
Salmon Harvester Opportunity Fund is the new owner of One Victoria Square, bought from ‘Serviced Offices UK’ which is a joint venture between Aviva Investors and Hermes.
Located five minutes walk from New Street Station, the 118,529 sq ft office building is currently 88% let to six tenants including Regus, Lloyds and the Home Office. It is the former home of the IoD in the West Midlands, which recently relocated to Eleven Brindleyplace.
The £17.5m purchase price reflects a net initial yield of 8.3%.
The vendor was advised by the Birmingham and London offices of DTZ and the purchaser was advised by Jones Lang LaSalle.
DTZ associated director James Bladon said: “This was an exceptional opportunity to secure the freehold interest in a prominent building in the heart of Birmingham’s central business district.
“One Victoria Square attracted good interest because it presents realistic active management opportunities to add value through lease re-gears, refurbishment, re-letting and the development of surplus sites.
“Salmon Harvester’s purchase demonstrates faith in the Birmingham market.”
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