Birmingham property investment market hots up as REI sells Cathedral Place for £4.6m
PROPERTY group Real Estate Investors has sold a central Birmingham office building for £4.606m.
In another indication of the attractiveness of central Birmingham to property investors, entrepreneur Paul Bassi’s Birmingham-based firm has sold Cathedral Place to Canada Life.
The property which totals 12,933 sq ft, has achieved price per square foot of £356 and a net initial yield of 4.12%.
Cathedral Place is home to REI’s head office, recruitment consultants Greenwell Gleason and Key Personnel, and charity Shaw Trust. It is located at 42-44 Waterloo Street, on the corner of Temple Row West.
Bassi said: “This sale is significantly above our book value and more accurately reflects the potential value of properties within our portfolio and reveals a much improved regional property investment market.
“We continue to receive interest in a number of our properties and are in discussion in respect of other sales which will provide the company with returns in line with our expectations.”
The deal follows on from a busy May which saw REI buy City Gate House in Leicester, a retail unit in Bromsgrove High Street and the former Sandwell College campus in Smethwick.
So far this year, REI has spent £8.6m on acquisitions.
REI undertook a successful £20m placing in March 2014 and has since announced a run of completed lettings, including new tenants Goodchild Estate Agents, Clark Brooks Turner Carey Solicitors, The Royal College of Surgeons, YMCA, KSS Leisure, Bad Apple Hair and eCigs UK.
Meanwhile, in a stock market trading update covering the six months to June 30, REI reported it is making excellent progress on acquisitions and on-going asset management across its portfolio.
It now has 686,281 sq ft across 47 buildings and 151 tenants. Some 19.3% is located in prime Birmingham’s central business district and 84.4% elsewhere in Birmingham and the wider Midlands.
Bassi said: “During the first half of 2014, we have made excellent progress on lettings, acquisitions and sales.
“I anticipate continued further activity during the second half in a significantly improved regional economy and property market.”
Bassi said it remains REI’s intention to secure REIT (real estate investment trust) status in the near future.
