Regional REIT has exchanged and completed on contracts to purchase Norfolk House, Smallbrook Queensway, Birmingham, for €22.8m (£20m) with a current net initial yield of 7.92%, in an off-market transaction. The 119,687ft² freehold property is situated in a highly commercial location in the centre of the city and enjoys close proximity to Birmingham New Street Station, the Bullring Shopping Centre and the proposed new HS2 station, which will better link Birmingham to both London and Manchester. The building comprises 12 retail units amounting to 27,433ft² and office accommodation of 92,254ft². The main office tenant is HMRC occupying 49% of the property. The building is 98% occupied with a net income of c.€1.93m (£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."