Hermes Real Estate has signed Network Rail to take 85,000 sq ft of offices at Baskerville House in Birmingham city centre.
The move will see Network Rail consolidate its existing three Birmingham offices in The Mailbox and Smallbrook Queensway into one location.
Jonathan Carmalt, director office agency JLL, who acted for Network Rail, said: “Increasingly a more strategic approach is required to address an organisation’s property needs, particularly public bodies who are under increasing scrutiny.
“Whilst it’s important to look for a more cost-effective, productive solution, it’s also crucial offices meet a client’s long-term needs.
“Baskerville House offers large, flexible footplates that can accommodate future growth, and its design, specification and prime location also make it an attractive proposition to help retain and recruit new staff.”
Hermes acquired the 200,000 sq ft building from administrator Deloitte in 2013 for around £42.5m, a net initial yield of circa 8.35%.
Since then, the Grade II listed block designed by Cecil Howitt has been comprehensively refurbished.
CBRE and Knight Frank advised Hermes.
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