German fund manager GLL Real Estate has bought One Brindleyplace in Birmingham from Trinova Real Estate for £37m – a 5.25% net initial yield.
GLL has bought the 68,000 sq ft building on behalf of its Luxembourg-based GLL Pan European Fund.
The building has been entirely let to Deutsche Bank since 2007. Its lease runs until 2028.
Trinoa acquired the office block from British Airways Pension Fund two years ago for circa £30m – a 6.25% yield.
The deal comes after bids closed last week on Hines and Lone Star’s sale of a five-office portfolio at Brindleyplace – one of the largest regional portfolio sales this year. A decision is due within the next two weeks.
The duo placed numbers Three, Four, Five, Six and Nine Brindleyplace on the market earlier this year for circa £285m. Estates Gazette exclusively broke the news of a pending sale in April 2015.
The buildings total 638,400 sq ft and occupiers include Royal Bank of Scotland, Deloitte and Beachcroft.
Deloitte announced last week that it had signed a 10-year extension to its existing lease at Four Brindleyplace, where the firm occupies 55,000 sq ft across three floors. The deal is believed to have signed at a rent of around £27 per sq ft.
Colliers International advised GLL on the purchase of One Brindleyplace; JLL represented Trinova.
Colliers International and CBRE are advising Hines and Lone Star on the sale of their portfolio.
