CBRE GI buys mixed-use asset in Birmingham at 7.4%

CBRE Global Investors said it has completed the purchase of a retail arcade and adjoining office building in Birmingham from Aviva Investors for £15.1 mln (€18.8 mln).

The income yield at purchase is 7.4% excluding costs.

The property, totalling 4,800 m2 over the 38-unit Great Western Arcade and 10 Colmore Row, a six-storey office building, was acquired on behalf of the CBRE UK Property Fund, which invests throughout the UK on behalf of over 45 institutional investors and has a portfolio of £568 mln. It is situated opposite Snow Hill Station in Birmingham’s prime business district.

CBRE Global Investors was advised by CBRE. Lewis Ellis acted for the vendor.

The CBRE UK Property Fund recently acquired a logistics distribution unit in West Thurrock for £18.15 mln, marking the first acquisition for the fund since the merger with CBRE UK Property Income Fund.