Frontier Estates and Xerox Pension Fund have formed a joint venture to refurbish the 4,645 sq m (50,000 sq ft) City House on Edmund Street in central Birmingham.
Xerox acquired the property from Unilever Pension Fund for £5.625m. The deal reflects an initial yield of 12.95%.
However, Frontier’s Christopher Digby-Bell is denying rumours that he has bought Equinox, the scheme adjacent to City House, to carry out a complete redevelopment of both sites. “We’re aware of the rumour but that’s not what we’re going to do. We’re only redeveloping City House,” he said.
The Inland Revenue currently occupies City House and plans to vacate in March. Work will start on site in August, with completion due early next year. The completed development is expected to have a capital value in the region of £15m.
Knight Frank advised Frontier Estates, while GVA Grimley acted for Unilever.
EGi News 24/02/00
