Investor buys Edgbaston offices for £23.75m
54 Hagley Road has been bought by an investment fund in one of the largest office deals this year outside of the city centre core.
However the purchase price of £23.75m is only slightly higher than the £23.1m Palmer Capital paid in 2015.
The building’s new owner, Standard Life Investments Property Income Trust (SLIPIT), believes there is “good scope for rental growth” at the Edgbaston site.
Currently the rents range from £8-£18 per sq ft and occupiers of its 140,950 sq ft of office space include the Ministry of Justice, Extra Energy and WYG. 
Jason Baggaley, fund manager of SLIPIT, said: “This will be the largest asset in the company, and meets our aims of buying good quality properties that appeal to occupiers.
“There is good scope for rental growth with plenty of asset management potential, and with a new tram stop due outside the building as part of major infrastructure projects the connectivity of the building will further improve.”
The purchase price reflects an initial yield of 7.6% while, because the acquisition was undertaken by way of a corporate acquisition, it has not paid stamp duty on the property.
SLIPIT already owns a handful of properties in the region. One of the largest properties in its portfolio is home to Atos, at Birmingham Business Park in Solihull, while it also owns Budbrooke Industrial Estate in Warwick and the 100,000 sq ft Swift House in Rugby. Last year SLIPIT bought a warehouse at Nexus Point, Erdington, for £4.5m.
