The Topland Group has acquired Friars Gate, a prominent 71,000 ft² (approx. 6,595 m²) multi-let office building in Solihull for £8.25 mln (approx. 10 mln) from PROMPT.
Friars Gate is situated just 1.4 miles west of Junction 4 of the M42. The property is home to nine tenants including Aviva Risk Services and Solihull Care Trust. It is 93% let. There is also a planning consent in place for a Costa Coffee drive-thru.
After deductions for void rent, rent-free periods and other void costs, the total day one returns to Topland reflect a net initial yield of over 17.66%.
Mark Snape, Investment Director of Topland Group said: "Friars Gate is just another example of the incredible value Topland is achieving. This is a very good asset in a strong location, underpinned by a host of good occupiers. This is a continuation of our investment strategy of buying good quality short let income with good quality residuals, which we will also be pursuing in 2013."
Topland Group was advised by Ed Jones of InvestEd. Savills advised PROMPT.