German investor Deka Immobilien has bought Direct Line House in Birmingham’s city centre for £22.5m (€26.4m) – a 6.4% yield.
Signature Capital originally put the prime office asset on the market in May 2010. The Irish-based private equity firm was looking for £23.6m for the seven-story office block – 6% yield.
The 63,400 sq ft (5,890 m2) building sits opposite Snow Hill railway station at 10-15 Livery Street, and is the headquarters of Direct Line insurance. The company, which has 10 years left to run on its lease, pays an annual rent of around £22.50 per sq ft.
Savills and Simmons & Simmons advised Deka. DTZ/DTZ Sherry Fitzgerald represented Signature Capital.
