Salmon Harvester Opportunity Fund has sold two buildings in Birmingham city centre to Strathclyde Pension Fund, managed by DTZI, for £31.4m.
1 Victoria Square is a 92,000 sq ft office building with a ground floor restaurant. The annual rent roll totals £1.6m and office tenants include Regus, Applause IT and the East West Rail Consortium. Net initial yield for this building is circa 6.25%
SHOF purchased 1 Victoria Square and 1 Swallow Street – the other building which has been sold – in December 2010 for £17.5m.
At 1 Swallow Street, the 55,000 sq ft office building has recently been converted under permitted development rights to 55 residential apartments.
Kevin O’Connor, senior director at DTZ Investors, said: “The acquisition allows us to recycle capital from recent disposals and gives the fund exposure to mixed-use offices and leisure property, as well as the growing PRS sector in a very strong regional centre.”
Matthew Meaden, fund Manager of SHOF, added: “Following careful stock selection we have been able to add significant value to our holdings in the city through an active asset management strategy.”
Both buildings are in a prime location, close to the city’s office core, Grand Central shopping centre and the recently revamped New Street station.
GBR Phoenix Beard advised Salmon Harvester Opportunity Fund, while BNP Paribas Real Estate advised the purchaser.
• To send feedback e-mail lisa.pilkington@estatesgazette.com or Tweet @eglisap or @estatesgazette
