AshbyCapital has secured £80 mln (€114 mln) in financing from debt specialist AgFe for its acquisition of Birmingham's Colmore Plaza, one of the largest UK single-asset real estate investment transactions outside London this year.
AshbyCapital has secured £80 mln (€114 mln) in financing from debt specialist AgFe for its acquisition of Birmingham's Colmore Plaza, one of the largest UK single-asset real estate investment transactions outside London this year.
The financing, at a loan-to-value ratio of almost 60%, follows AshbyCapital’s £140 mln acquisition of the building – which was paid for in cash – in August this year.
Colmore Plaza is a landmark freehold office building located in Birmingham's Colmore Business District. It provides 28,800 m2 of grade A office space over ground, mezzanine and 12 upper storeys.
London-based AshbyCapital is currently working to rebrand the building and has appointed architects Morey Smith to assist in the reworking. The aim is to position the building to take advantage of the strengthening market for prime offices in Birmingham, increasing occupancy levels from the current rate of 63.4%.
Charles-Etienne Lawrence, vice president of AshbyCapital, said: 'There is a significant lack of prime offices in the UK’s largest regional cities and prospects are particularly strong in Birmingham, where blue-chip occupiers such as HSBC and Deutsche Bank are expanding, attracted by a central location, good and improving transport links, and a strong talent pool.'
'This deal highlights our confidence in the Birmingham office market, the building itself, and in AshbyCapital’s ability to reposition it to maximise its value,' James Wright, partner at AgFe, said.