Regus Office Building on Victoria Square Sold for ┬ú17.5m
A landmark office property on Victoria Square in Birmingham, which provides serviced office space for businesses through global company Regus, has been sold for ┬ú17.5m.
Totalling 118,529 sq ft spread across two adjoining buildings, the property is a popular choice with businesses seeking serviced space due to its location in the city’s central business district, along with its modern fit-out and prestigious appeal with views across Victoria Square.
The property is currently 88% let to tenants including Lloyds TSB Bank Plc and the Home Office, alongside Regus, which reportedly brings in a total annual rental income of ┬ú1.54m.
Matthew Meaden, fund manager of the Salmon Harvester Opportunity Fund, who bought the property from its former owners Serviced Offices UK, said that the property offers “numerous opportunities for improvement”.
He added: “The tenant profile is strong but rents are low for such a well located office, there is development potential for hotel and possibly residential use, and there are some voids for us to further increase our returns.
“Given our strong financial platform in a market starved of debt and equity we are well positioned to make similar significant acquisitions.”
James Bladon, associate director of DTZΓÇÖs investment team, said that Salmon Harvester’s purchase demonstrates “faith in the Birmingham market.”
He commented: “This was an exceptional opportunity to secure the freehold interest in a prominent building in the heart of Birmingham’s central business district. One Victoria Square attracted good interest because it presents realistic active management opportunities to add value through lease re-gears, refurbishment, re-letting and the development of surplus sites.”
The property offers numerous options for businesses seeking flexible office space with a range of facilities, including meeting rooms, car parking, broadband access and a staffed reception.