The One Snowhill office block in Birmingham, which comprises approximately 24,500 m² of rental space, has a new owner.
Completed by developer Ballymore in 2009 and acquired in 2010 by Commerz Real for its open-ended real estate fund hausInvest, the grade-A property is becoming part of the Unilmmo: Europa open-ended real estate fund operated by Union Investment Real Estate GmbH in an off-market transaction. The parties agreed not to disclose details of the purchase price.
The 12-story building has a BREEAM rating of 'Very Good' and is let on long-term leases to financially strong tenants KPMG, Barclays Bank PLC and law firm DWF LLP. The current occupancy rate is 94%. In addition to stable returns, the excellent and highly accessible location in Birmingham's commercial center with direct train links to London and the West Midlands combined with the high construction standard of One Snowhill make this a core investment.
“We are acquiring one of the best office buildings outside London in One Snowhill. After investments in Manchester, Glasgow and most recently Cardiff, this opens up another important regional location in the UK, thereby continuing an investment strategy which is adapted to the growing strength of the London investment market,” said Martin Brühl, head of International Investment. One Snowhill contributes to regional diversification of the UK portfolio of Union Investment's Europa fund, which currently consists of three properties worth some €520 million in total.
As the UK's second largest city, with approximately one million inhabitants, Birmingham has a broadly diversified, dynamically evolving economy with an emphasis on the automotive and financial services industries. Rents are forecast to increase in the Birmingham office market over the next few years, especially in the core segment.
Source: Union Investment