Birmingham’s Colmore Gate sold for £40m
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Ashtrom Properties UK has purchased Birmingham office building Colmore Gate for £39.5m.
A landmark on the Birmingham skyline, Colmore Gate comprises 171,834 sq ft of office and retail space across 18 storeys and 86 secure basement car parking spaces.
Currently let to five tenants including Crown Prosecution Service (CPS), AON and Tesco, Colmore Gate has an average weighted unexpired term of 3.4 years to expiry and 1.6 years to break and average rent of £24.37 per sq ft on let space.
The building is located in the heart of the city centre opposite Snowhill Railway Station and within the Colmore Business District, home to approximately 500 companies encompassing over six million sq ft of highly concentrated office space.
Guy Lewinsohn, CEO of Ashtrom Properties UK, said: “The acquisition of Colmore Gate is in line with our current strategy of investing in UK regional cities. We are excited to transform this landmark into a unique and exciting office building with strong ESG credentials and unrivalled amenity. We are thrilled to add this office building to our growing portfolio across the country.”
Joshua Morris, partner in the capital markets team at Knight Frank, added: “We’re thrilled to have advised Ashtrom Properties on its purchase of Colmore Gate. The impressive landmark building represents a rare opportunity to deliver a significant repositioned office scheme into a supply-starved market place. Birmingham’s office market is witnessing a constrained level of existing Grade A supply, with tenant demand rebounding to pre-pandemic levels as new requirements emerge.”
Knight Frank acted on behalf of Ashtrom Properties.
JLL acted on behalf of Aviva Investors.