AshbyCapital has secured an £80m (€113.7m) loan facility from AgFe for its Colmore Plaza building in Birmingham’s city centre.
The financing, at a loan-to-value ratio of 60%, follows AshbyCapital’s acquisition of the building, which was paid for in cash, in August this year.
Colmore Plaza is a landmark freehold office building in the Colmore Business District, Birmingham’s most significant business location. It consists of 310,000ft² (28,800m²) grade-A office space over ground, mezzanine and 12 upper storeys.
AshbyCapital is currently working to rebrand the building and has appointed architects Morey Smith to assist in maximising its potential. The aim is to position the building to take advantage of the strengthening market for prime offices in Birmingham, increasing occupancy levels from the rate of 63.4% at acquisition. This is AshbyCapital's first acquisition outside of London.
Charles-Etienne Lawrence, vice president of AshbyCapital, said: “There is a significant lack of prime offices in the UK’s largest regional cities and prospects are particularly strong in Birmingham, where blue-chip occupiers such as HSBC and Deutsche Bank are expanding, attracted by a central location, good and improving transport links, and a strong talent pool. AgFe shares our confidence in this building and its prime location, and we are pleased to have secured financing from them, retrospectively funding one of the largest acquisitions outside London this year.”
James Wright, partner at AgFe, said: “As confidence continues to spread across the UK’s regional cities, we are very pleased to work with AshbyCapital to provide financing for Colmore Plaza, which is one of Birmingham’s best office buildings. This deal highlights our confidence in the Birmingham office market, the building itself, and in AshbyCapital’s ability to reposition it to maximise its value.”
