Regional REIT buys Norfolk House, Birmingham – Regional REIT Limited has exchanged and completed on contracts to purchase Norfolk House, Smallbrook Queensway, Birmingham, for GBP20m, reflecting a current net initial yield of 7.92%. The deal was done off market.
The 119,687 sq. ft. freehold property is in the centre of Birmingham; adjacent to Birmingham New Street Station, the Bullring Shopping Centre and close to the proposed new HS2 station (which, if it’s built) will better link Birmingham to both London and Manchester. The building comprises 12 retail units amounting to 27,433 sq. ft. and office accommodation of 92,254 sq. ft.. The main office tenant is HMRC occupying 49% of the property.
The building is 98.75% occupied with a net income of about GBP1.69m.
Stephen Inglis, chief executive officer of London & Scottish Investments, the manager, commented: “We are delighted to have acquired Norfolk House. This is a high quality asset, where substantial capital expenditure for refurbishment has been undertaken and yet still offers further value enhancing asset management initiatives. The building is in a pivotal location in Birmingham city centre which has been undergoing, and will continue to benefit from, a substantial redevelopment programme to enhance rental and capital values. This continues the REIT’s strategy of identifying off market deals, which will enhance income and provide excellent future prospects, in key regional locations.”
London & Scottish Property Asset Management Ltd. is the property manager for the vendor and has a 6.7% interest in the property.
RGL : Regional REIT buys Norfolk House, Birmingham
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