Investor acquires Birmingham campus for new £300m regional office fund

Office investor Hillview has acquired an office campus on the edge of Birmingham for a new £300m regional real estate fund in a deal worth almost £10m.

In its first investment for the new Hillview Partners Property Fund III, Hillview has bought three adjacent office buildings at Kings Court, a development of office suites at Birmingham Business Park, from Catalyst Capital for £9.7m, reflecting a net initial yield of 8.72%.

The three buildings comprise six self-contained units at 2620-2650, totalling 51,503 sq ft in a range of suites from 1,500 sq ft to 17,150 sq ft. The occupiers range from SMEs to international technology companies.

Birmingham Business Park, located by the M42 in Solihull, is one of the region’s most established commercial hubs, comprising 1.84 million sq ft over 148 acres.

Hillview was advised by Knight Frank and Catalyst Capital was advised by Gerald Eve.

Nadav Livni, founder of Hillview Group and fund manager of Hillview Real Estate, said: “Kings Court is an excellent first acquisition for our new fund, providing exactly the sort of opportunities for us to add value from upcoming lease events, refurbishment of units and regearing leases. I believe the six two-storey, self-contained units will be highly attractive to companies seeking occupational flexibility and safety in the post-Covid environment, enabling tenants to drive and cycle to work, as well as having excellent amenities in close proximity.

“The acquisition of Kings Court is in line with our long-held strategy of investing in well-located, multi-tenanted, institutional-quality properties in key cities and regions, which has been a major factor in us collecting more than 98% of the rent from our existing portfolio since lockdown began and illustrates the resilience of our focused approach.”