MEPC has paid £30m for the 27,871 sq m (300,000 sq ft) Priory and Cannon Houses on Priory Queensway in Birmingham, reflecting a net initial yield of 9.25%.
The building is let to, amongst others, NatWest and Sharelink and generates around £3m pa. The company hopes to appoint letting agents in the next few months and run a rolling refurbishment programme as leases on the multi-let building expire. At least 2,787 sq m (30,000 sq ft) will become available next year.
MEPC director Julian Barwick said the company is targeting acquisitions in Birmingham, Glasgow and Leeds: “The strategy for our office portfolio has been to exit investments where we feel growth is limited, particularly in London where the market has been strong, with a view to reinvesting in assets demanding more management skill, located out of London where the rental growth ripple has yet to arrive.”
Kinney and Green, Richard Ellis advised MEPC. Grimley, Alan Watt & Co acted for the vendor City Site Estates.
EGi News 07/07/97
