Hillview Real Estate has acquired an office campus on the edge of Birmingham for Hillview Partners Property Fund III, a new €333m (£300m) value-add regional real estate fund. In its first investment for the new fund, Hillview has bought three adjacent office buildings at Kings Court, a development of high-quality office suites at Birmingham Business Park, from Catalyst Capital for €10.8m (£9.7m), reflecting a net initial yield of 8.72%.
The three buildings comprise six self-contained units at 2620-2650, totalling 51,503ft² in a range of suites from 1,500ft² to 17,150ft². The occupiers range from SMEs to international technology companies. The weighted average unexpired lease term is 4.66 years. Birmingham Business Park, located by the M42 in Solihull, is one of the Midlands’ most established commercial hubs, comprising 1.84 million ft² over 148 acres.
Nadav Livni, the founder of Hillview Group and fund manager of Hillview Real Estate, said: “Kings Court is an excellent first acquisition for our new fund, providing exactly the sort of opportunities for us to add value from upcoming lease events, refurbishment of units and regearing leases. I believe the six two-storey, self-contained units will be highly attractive to companies seeking occupational flexibility and safety in the post-COVID environment, enabling tenants to drive and cycle to work, as well as having excellent amenities in close proximity. The acquisition of Kings Court is in line with our long-held strategy of investing in well-located, multi-tenanted, institutional-quality properties in key cities and regions, which has been a major factor in us collecting more than 98% of the rent from our existing portfolio since lockdown began and illustrates the resilience of our focused approach.”