Standard Life Investments Property Income Trust has acquired 54 Hagley Road in Birmingham, for just over £24m, reflecting a net initial yield of 7.7%, from Sedco Capital, Palmer Capital and Opus Land.
The sale follows a £15m refurbishment at the 140,951 sq ft nearly full multilet office, which has an average rent of £13.34 per sq ft.
Tenants include Salhan Accountants, Alliance Surgical and WYG Group.
Oli Lord, deputy fund manager of Standard Life Investments Property Income Trust, said: “This will be the largest asset in the company, and meets our aims of buying good-quality properties that appeal to occupiers.
“There is good scope for rental growth with plenty of asset management potential, and with a new tram stop due outside the building as part of major infrastructure projects the connectivity of the building will further improve.”
Sedco Capital, Palmer Capital and Opus Land were advised by Savills. Standard Life Investments Property Income Trust was advised by GVA.
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