The Crown Estate has acquired a 22,747 sq ft building located in Birmingham’s ‘Golden triangle’ for £21.75m.
The deal with vendor CCLA Investment Management, on behalf of The Local Authorities’ Mutual Investment Trust (LAMIT) represents a net initial yield of 4.08%.
The building is at 140-145 New Street, on the intersection of New Street and High Street close to the Bullring.
Current tenants are Adidas, Royal Bank of Scotland, Schuh and Jade.
Paul Hannam of CCLA Investment Management said “LAMIT has owned the building since 1976 and strategically entered into a JV with Hammerson to unlock the latent value.
“Over the last seven years the property has shown 9% per annum capital growth and has consistently outperformed the IPD Market Performance measures due to active asset management”.
Jim Yates, Head of the Regional Portfolio at The Crown Estate, said, “It is fantastic that we have been able to acquire a prime retail asset in central Birmingham, a location which our research indicates will provide outstanding rental growth over the next few years as the City continues to benefit from the full impact of the Bullring scheme.”
King Sturge advised CCLA whilst CB Richard Ellis and S-T Camplin Bianco acted for The Crown Estate.
References: EGi News 01/03/06
