Monday, 8 December 2014
Bridges Ventures sells Birmingham office building to F&C UK Property fund for €14.8 mln (UK)
Bridges Sustainable Property Fund announces the sale of 158/170 Edmund Street, Birmingham to F&C UK Property Fund for £11.65mln (approx. €14.8 mln), reflecting a yield of 5.75%.
The 30,000 ft² (approx. 2787 m²) office building was sold to F&C REIT Asset Management, who acted on behalf of F&C UK Property Fund. The property was acquired in 2012 in partnership with Evenacre, a Birmingham based real estate company with a strong track record of purchasing and redeveloping office buildings. The Fund undertook a refurbishment to create high quality office space for a growing number of tenants seeking modern office facilities within the CBD of Birmingham. Following completion of building works the property has been fully let to a range of tenants at headline rents of up to £25 per ft² (approx. €349.40 per m²).
Building works included a range of environmental initiatives including intelligent lighting and solar photovoltaic panels. These works improved the property’s EPC rating from D to B, delivering a forecast 44% carbon saving whilst significantly reducing total occupational costs for tenants owing to lower energy and service charge costs.
Guy Bowden, Acquisition Director of Property Funds at Bridges Ventures, commented: “In common with many of the investments held within our property funds focused on delivering commercial returns whilst making a positive social impact, we acquired this redevelopment opportunity off-market at a price substantially below replacement cost. Whilst investment into provincial offices was out of favour at the time of the acquisition, we had identified increasing tenant interest with limited supply of modern accommodation. By working with Evenacre to acquire the property and implement an environmental refurbishment and improvement programme, we have been able to deliver a very high quality building for which tenant interest has been strong.”
Guy Glover, Fund Manager of the F&C UK Property Fund, commented: “This latest acquisition represents a very attractive asset for our investors, providing good quality income with the prospect to enhance the income further over time.”