Agents pick most significant deals to end of January
Great Charles Street Estate, central Birmingham
Type of deal Investment
Vendor Aviva
Purchaser Angelo Gordon with Dunedin as asset manager
Size 332,000 sq ft
Asking price £20m
Chosen by Charles Toogood, senior director, national offices team, GVA
I am highlighting the Great Charles Street Estate, comprising seven secondary office buildings in Birmingham’s CBD. This salecrepresents a rare opportunity for this number and scale of buildings to come to market in single ownership.
Investor response to the sale was outstanding, with widespread national opportunity funds and property companies expressing interest, backed by a variety of finance sources.
After some 35 viewings with 30 separate parties – clearly demonstrating the weight of money and appetite for investment stock in Birmingham – Angelo Gordon and Dunedin were selected as purchasers.
A sale was agreed at a level substantially above the £20m asking price and contracts were exchanged within 18 days from the issuing of the legal pack – a very fast turnaround on such a complex transaction.
Opportunities include residential conversion, office refurbishment and general asset management, with the location benefiting from the gentrification and access improvements being brought about by the redevelopment of Paradise Circus by Hermes and Argent.
Unit 2, Easter Park, Kidderminster
Type of deal Warehouse leasing
Landlord IPIF
Tenant Brintons Carpets
Size 31,700 sq ft
Rent £5.25 per sq ft
Chosen by Duncan Bedhall, managing partner, Halls Commercial
This grade-A warehouse had never been occupied, a victim of the credit crunch in 2008, the year it was completed. Now a five-year lease to iconic carpetmaker Brintons, which also suffered in the recession, signals a return to better times for both manufacturing and commercial property.
Brintons went from £500,000 profit in 2008 to a £9m loss in 2009, was sold to The Carlyle Group and shed 100 jobs. A £3m investment in its factories in 2013, safeguarded 500 jobs.
Across the market, there has been sustained, genuine interest and growing unsatisfied demand, taking occupation enquiries to a level not seen for almost 10 years.
This deal adds to the squeeze on availability of quality industrial units of 20,000-50,000 sq ft in or near the M5/M42 corridor, presenting an opportunity for developers prepared to build speculatively – witness the significant interest in St Modwen’s spec-build industrial units in Worcester.
4040 Lakeside, Birmingham Business Park
Type of deal Letting
Landlord Canmoor
Tenant WM Housing Group
Size 27,134 sq ft
Rent £19.50 per sq ft
Chosen by Mark Robinson, partner, KWB
This letting represents a complete turnaround in the fortunes of Birmingham Business Park and, more widely, a return in popularity of the out-of-town office market. At the depths of the recession the park was cited as a failing asset in a flawed market.
Today, this deal signifies there is strong occupational demand for business parks and they remain a viable location for some organisations. WM Housing was looking to reduce costs by consolidating three offices into a single, accessible location.
After scrutinising several locations, the park was chosen as the most viable proposition in terms of not only accessibility but demographics and availability of skilled staff. It becomes the second housing association to consolidate there – adding to a diverse occupier base.
With take-up in the M42 office market reaching its highest level for eight years and with the park securing 34% of all transactions, WM Housing is not alone in its decision-making.
Homing in on Coventry
Housing schemes were high on the agenda in Coventry. Student accommodation provider Unite and Complex Development Projects lodged an application for a 286-bed scheme, while Persimmon won approval for its £65m housing-led regeneration scheme on the former Courtaulds factory site.
Wolverhampton plans regen
Wolverhampton council plans a canalside quarter and more than 2,000 homes in a 12-year scheme that will include shops, leisure space, a supermarket, cinema and public realm improvements.
St Modwen in at Tamworth
St Modwen secured outline planning permission for a 200,000 sq ft extension to Centurion Park, close to the M42, in Tamworth. The company said it would help meet demand for high-quality industrial stock in the area.
Birmingham eyes retail recognition
Retail and infrastructure investment of close to £1bn looked set to aid Birmingham’s ambition to become the UK’s second major shopping centre, after London. Plans include a £35m John Lewis store, a £20m investment in the existing Selfridges, and Harvey Nichols doubling in size in the Mailbox, itself undergoing a £50m facelift.
Door closes on Gateway
The planned £450m Coventry & Warwickshire Gateway scheme, close to Coventry Airport, was blocked by communities secretary Eric Pickles. Supporters of the 3.6m sq ft scheme, said they were “genuinely shocked” by the move.
