Birmingham mixed-use block hits the market for £73m
A mixed-use block in the centre of Birmingham, made up of two adjoining office buildings, has been brought to market with a price of £73m, reflecting a 9% net initial yield and a low capital value of £287 per sq ft.
Priory Court and The Lewis Building, located at 33 Bull Street, offer around 254,000 sq ft across their ground and seven upper floors. The asset brings in a total passing rent of roughly £7m.
The office accommodation in Priory Court offers 136,728 sq ft of space, of which the entirety of the office space, totalling 126,297 sq ft, is occupied by the Ministry of Justice until 2034. The building also includes a 10,431 sq ft Wetherspoon’s pub on the ground floor.
A mixed-use block in the centre of Birmingham, made up of two adjoining office buildings, has been brought to market with a price of £73m, reflecting a 9% net initial yield and a low capital value of £287 per sq ft.
Priory Court and The Lewis Building, located at 33 Bull Street, offer around 254,000 sq ft across their ground and seven upper floors. The asset brings in a total passing rent of roughly £7m.
The office accommodation in Priory Court offers 136,728 sq ft of space, of which the entirety of the office space, totalling 126,297 sq ft, is occupied by the Ministry of Justice until 2034. The building also includes a 10,431 sq ft Wetherspoon’s pub on the ground floor.
The Lewis Building comprises 11,620 sq ft of office accommodation, which is multi-let and was refurbished in 2017 for £18m. Tenants include Business Growth Fund, Management Consortium Bid, Regus Spaces and the Secretary of State for Communities and Local Government. The fourth and fifth floors of the building are vacant, totalling 33,322 sqft.
There is also a smaller building between the offices which offers 5,842 sq ft of office space across 9 ground units.
The asset is being marketed as an opportunity to capitalise on rental growth, with average rents in The Lewis Building at £23.03 per sq ft, as prime rents in Birmingham are projected to hit £45 per sq ft this year and £55 per sq ft next year.
CBRE has been appointed to market the asset.
