Legal & General Property has exchanged contracts to acquire Priory Court and Temple Court at Old Square in the UK city of Birmingham for a total £87 mln (€106 mln).
Legal & General Property has exchanged contracts to acquire Priory Court and Temple Court at Old Square in the UK city of Birmingham for a total £87 mln (€106 mln).
The property was acquired from its receivers on behalf of LGP's second UK Property Income Fund. The price reflects a net initial yield of 8.28%.
Located in the heart of Birmingham’s Central Business District, the asset comprises two linked, high-profile office buildings totalling 21,400 m2 of space, a retail parade of nine units and a pub.
The asset is multi-let to 13 tenants at a total passing rent of £7.66 mln per annum and has an overall average weighted unexpired lease term in excess of 11 years. Priory Court is majority-let to the UK government until 2034, whilst Temple Court is predominantly let to PwC until December 2014.
Launched in November 2013, LGP’s UK PIF II has secured over £218 mln from investors based in the UK, Nordics and Middle East, giving it total firepower of £372 mln including gearing. The fund is targeting a size of £750 mln, through a series of closings, and is capped at £1 bn.
CBRE advised LGP on the Birmingham transaction.
