F&C REIT has bought 158/170 Edmund Street, Birmingham, from Bridges Ventures for £11.7m, a 5.75% yield.
F&C’s UK Property Fund bought the 30,000 sq ft building from Bridges Sustainable Property Fund, which bought the building in 2012 in partnership with local property company Evenacre.
A refurbishment then took place, after which the building was let to a range of tenants at up to £25 per sq ft.
Bridges Ventures acquisition director Guy Bowden said: “Whilst investment into provincial offices was out of favour at the time of the acquisition, we had identified increasing tenant interest with limited supply of modern accommodation. By working with Evenacre to acquire the property and implement an environmental refurbishment and improvement programme, we have been able to deliver a very high-quality building in which tenant interest has been strong.
“Institutional appetite for regional office investment has now increased substantially and we are very pleased to be able to exit this investment at this point in the cycle and thereby deliver strong returns to our investors.”
F&C UK Property Fund fund manager Guy Glover said: “The recent refurbishment work undertaken by Bridges Ventures makes the property an extremely desirable prospect for tenants looking for quality office space in the area. The property is well situated to benefit from growing demand for modern office facilities within the centre of Birmingham.
“The F&C UK Property Fund is continuing to expand and remains committed to acquiring well let, good-quality buildings throughout the UK. As a cash purchaser we can continue to act speedily to acquire interesting opportunities as they arise.”
GBR Phoenix Beard acted on behalf of Bridges Ventures; JLL acted on behalf of F&C REIT.
