Regional REIT Limited has acquired the Norfolk House, Smallbrook Queensway, Birmingham, for a consideration of £20m with a current net initial yield of 7.92%, in an off market transaction.
The 119,687 sq. ft. property is in a highly commercial location in the centre of Birmingham; situated adjacent to Birmingham New Street Station, the Bullring Shopping Centre and close to the proposed new HS2 station, which will better link Birmingham to both London and Manchester.
The building comprises 12 retail units amounting to 27,433 sq. ft. and office accommodation of 92,254 sq. ft.. The main office tenant is HMRC occupying 49% of the property.
The building is 98.75% occupied with a net income of c.£1.69m.
Stephen Inglis, Chief Executive Officer of London & Scottish Investments, the Asset Manager, commented:
“We are delighted to have acquired Norfolk House. This is a high quality asset, where substantial capital expenditure for refurbishment has been undertaken and yet still offers further value enhancing asset management initiatives.
The building is in a pivotal location in Birmingham city centre which has been undergoing, and will continue to benefit from, a substantial redevelopment programme to enhance rental and capital values. This continues the REIT’s strategy of identifying off market deals, which will enhance income and provide excellent future prospects, in key regional locations.”