CBRE Global Investors has completed the purchase of the Great Western Arcade and 10 Colmore Row in Birmingham for £15.1 mln (approx. €18.9 mln). The vendor was Aviva Investors. The transaction is on behalf of the CBRE UK Property Fund - the principal pooled fund of CBRE Global Investors UK - which invests throughout the UK on behalf of over 45 institutional investors and has a portfolio of £568 mln (approx. €710 mln).
The holding totals 52,405 ft² (approx. 4,869 m²) combining a 38 unit Grade II listed retail Arcade 30,948 ft² (approx. 2,875 m²) with an office building 21,457 ft² (approx. 1,993 m² over 6 floors). The property is situated opposite Snow Hill Station in Birmingham’s prime business district. The Arcade is unique within the city and attracts a range of leading boutique & specialist retailers. The income yield at purchase is 7.4% after allowance for costs.
Commenting on the transaction, Matthew McDonald, Fund Manager of UKPF, said: “This acquisition is a solid addition to the portfolio as we have secured a prominent asset which generates an attractive level of income.”
“The holding combines some great office space with an Arcade that has potential for further re-positioning through continued improvement to the tenant mix. Generally, we believe the asset will benefit from the improvements taking place in Birmingham City center. ”