UK Railways Pension Scheme buys Birmingham office asset for £95m
The UK pension fund for railway companies has bought an office asset in the West Midlands region of England for around £95m (€106.6m).
RPMI Railpen, the investment manager for the £28bn Railways Pension Scheme, said it bought the interconnected 2 Colmore Square and Cannon House in Birmingham’s city centre from Nurton Developments. The 300,000sqft building is 95% let.
Anna Rule, the head of property at RPMI Railpen, said: “The building’s proximity to the new HS2 Curzon Street station, the low rents and the asset management opportunities that exist provide long-term opportunities for growth.
“This purchase meets all of our core investment themes and will help to meet our mission to pay members’ pensions securely, affordably and sustainably.”
Rupert Young, the development director of Nurton Developments, said: “We’re proud of what we achieved with the back to frame refurbishment of this significant asset.
“Having completed the vast majority of our business plan now is an appropriate time to recycle the capital and look for new value-add opportunities.“
GVA and V7 Asset Management acted on behalf of RPMI Railpen, with CBRE representing the vendor, Colmore Square LLP (Nurton Developments).