England's second city is continuing to attract the interest of investors, with two more office buildings being snapped up in central Birmingham.
Property investment firm Custodian REIT has acquired Lancaster House, on the corner of Newhall Street and Great Charles Street, for £6.65m. Elsewhere, 63 Temple Row has been bought by EPIC (UK) for £11.6m.
Facing towards the city's central business district, Lancaster House is a 39,600 sq ft office building with occupiers including property consultancy KWB and developer Stoford.
“We are delighted to have secured this recently refurbished office building in Birmingham city centre where the office market is resurgent and prospects for rental growth strong,” said Richard Shepherd-Cross, managing director of Custodian Capital (Custodian REIT’s discretionary investment manager).
“The property offers open-plan, 2,000-3,350 sq ft office suites which are a good fit with local occupational demand. This, combined with reducing supply, as a result of a number of nearby buildings being converted to residential use, could further compound rental growth prospects.”
63 Temple Row, on the other hand, is a ten storey, 39,515 sq ft multi-let office building, home to Allied Irish Bank and law firm BLM. It is leased at an average office rental of £17.60 per sq ft, reflecting a net initial yield of 5.67%.