Hillview Real Estate acquires two regional offices for €21.1m (GB)

Hillview Real Estate acquires two regional offices for €21.1m (GB)

Hillview Real Estate has acquired two out-of-town office investments in Watford and Birmingham for €21.1m (£18.25m), reflecting a blended net initial yield of 7.7%. In its second and third investments for the new fund, Hillview Real Estate has bought Belfry Business Park in Watford and the 1320 building at Birmingham Business Park. Belfry Business Park comprises the freehold interest in five buildings on Colonial Way, a major industrial and office location on the edge of Watford.

 

One of the five buildings has been sold on a 999-year lease to Majestic Wines. The remaining buildings have a total area of 43,245ft² and are let to six tenants, including HSBC Business & Corporate Banking, Handelsbanken and RX Systems. There is a 5,28ft² unit that is vacant. The weighted average unexpired lease term is 3.3 years to breaks and 7.4 years to expiries.

 

1320 Birmingham Business Park comprises a 26,374ft² building fully let to two tenants. The weighted average unexpired lease term is 5.8 years. 1320 Birmingham Business Park fits well with the first acquisition by Hillview Partners Property Fund III, which was also on Birmingham Business Park. Kings Court (2620 – 2650) comprises a development of three adjacent buildings providing high-quality office accommodation and was purchased from Catalyst Capital for €11.2m (£9.7m).

 

Nadav Livni, managing director of Hillview Group and fund manager of Hillview Real Estate, said: “These two investments are excellent acquisitions for our new fund. Both provide stable income and opportunities for our team to significantly add value from enhancing amenities, lease events, refurbishment of units and regearing leases. They are perfect office properties in the post-Covid environment, offering tenants in high-growth sectors convenient locations, occupational flexibility, local amenities and the ability to drive or cycle to work”.

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