Germany's largest listed property company IVG has acquired a six-storey office building in the English city of Birmingham from Bank of Ireland Private Banking for £30.5 mln (EUR 38 mln). The price reflects a net initial yield of about 6.4%.
Germany's largest listed property company IVG has acquired a six-storey office building in the English city of Birmingham from Bank of Ireland Private Banking for £30.5 mln (EUR 38 mln). The price reflects a net initial yield of about 6.4%.
The property at 2 Brindleyplace comprises 78,000 square feet (7,200 m2) of space and is let to Lloyds TSB until 2021 on a low base rate of £24.50 per square feet. There are also 75 parking places.
Broker Jones Lang LaSalle acted for IVG in the transaction on behalf of clients of IVG Funds.
Ed Gamble, head of Investment at JLL's Birmingham office, said: 'This purchase provided IVG with a unique opportunity to acquire a prime asset on Brindleyplace, one of only two buildings which are outside the Brindleyplace Partnership, and was an ideal addition to our client’s investment portfolio.'
'Whilst general market conditions remain tough, Birmingham’s office leasing market looks on target for a record year of take-up. This combined with prime office yields in the city centre now trading above the 10-year average level of around 6.0%, overseas investors, particularly German funds, are once again seeing good value in Birmingham and other good quality regional centres,' he said.
CB Richard Ellis represented Bank of Ireland Private Banking.
