Floreat purchases prime central Birmingham office for refurbishment opportunity
Floreat’s real estate team have completed the purchase of Grade II listed 79-83 Colmore Row in Birmingham for £6.9m (£250 psf).
The 27,789 sq ft office building – arranged over ground and six upper floors – has a net initial yield of 7.75%.
The front of the site is Grade II listed and was built in the 1870s, with a rear extension developed in 1989. It is let until June 2020 to the Royal Bank of Scotland.
The asset is the fourth UK regional value-add purchase for Floreat’s real estate team, who acquire and manage investments throughout the UK and Europe. The group remains committed to investing in the UK’s major regional centres, following continued strong performance despite wider political and economic uncertainty.
William Hardyment, investment manager in the real estate team, said: “We are delighted to acquire this Colmore Row asset. It gives us the opportunity to create a truly unique offering right in the heart of Birmingham’s prime office pitch.
“We are aiming to deliver a product that will both complement and improve Colmore Row and help Birmingham continue to attract top quality businesses into the city.”
Floreat was represented by JLL and Stephenson Harwood.
Floreat is an independent and privately held investment group headquartered in Mayfair, London. Originally formed in 2000, the business provides private client and investment management services to ultra-high net worth individuals and institutions across the globe. Key to Floreat’s success to date has been its active approach to co-investing, where clients are invited to invest alongside the business across a range of assets and opportunities.