HINES AND LONE STAR LAUNCH BRINDLEYPLACE INVESTMENT TO THE MARKET
One of the largest commercial property investments to come to market in Birmingham in recent years is being sold by Hines and Lone Star.
The joint venture is selling its ownership in the Brindleyplace estate to capitalise on the unprecedented level of investment demand in the city.
The investment includes Three, Four, Five, Six and Nine Brindleyplace, which comprise more than 470,000 sq ft of Grade A offices, plus ground floor retail and leisure space, as well as Brunswick Arcade, an 890 space multi-storey car park, retail parade and health club, and the Cafe in the Square, which is let to Costa Coffee.
High profile office occupiers include Deutsche Bank, RBS and Deloitte, which account for almost half (47 per cent) of the total rental income. The average rent for office space is just
£24.50 per sq ft, compared to a prime rent of £30.00 per sq ft in Birmingham city centre.
Hines and Lone Star have instructed CBRE and Colliers International to sell the investment on its behalf.
Ed Gamble, executive director at CBRE, said the sale comes at an exciting time for Birmingham and its property market.
“The occupational market is buoyant in Birmingham, characterised by a lack of supply, strong tenant demand and increasing inward investment activity, exemplified by HSBC and the confidence it has shown in the city with its 210,000 sq ft pre-let at Arena Central.
“This is combined with record take-up figures for the first half of the year, forecasted rental growth from £30 per sq ft to £35.50 per sq ft over the next three years, and the fact that Birmingham has more capital committed to infrastructure projects than any other European city. Brindleyplace is well set to benefit from this going forward.
“For investors it presents an extremely rare opportunity to acquire the majority of one of the UK’s most successful, office-led, mixed-use schemes.”