Martley Capital has acquired the 4 Temple Row Grade A office building in Birmingham city centre for a price in excess of £5m in a deal reflecting a net initial yield of more than 11.5%.
The building, which is located in the heart of the Colmore Business District, was extensively refurbished in 2017 to provide contemporary Cat A and Cat A+ office space, in addition to new M&E. The multi-let asset has occupancy of 88% and a WAULT to breaks of 2.2 years, providing the opportunity to increase rental income by letting vacant space and re-gearing existing leases.
The office was acquired as part of the firm’s UK regional office investment strategy and the Martley team is in the process of identifying further target assets in regional towns and cities across the UK that provide attractive day-one yields with scope to further improve rental income.
Rory Finnan, managing director at Martley Capital, said: “The acquisition of 4 Temple Row underscores Martley Capital’s strong belief in the resilience and recovery of the regional office market. The asset was acquired at an attractive entry price and provides us with an opportunity to deliver significant value through proactive asset management.”
Martley Capital was represented by Knight Frank.
