Nurton Capital has acquired the 24,606 sq ft 2 Exchange Court office building at Wolverhampton Business Park for £4.25m through a joint venture between Nurton Developments and a private capital partner.
As part of the transaction, Nurton Capital also acquired an adjacent overflow car park.
The building, which is located adjacent to Junction 2 of the M54, is currently occupied by specialist lender OSB Group and the relatively short unexpired lease term presented an opportunity to acquire the asset at “attractive” pricing.
Ashley Hudson, managing director of Nurton Capital, said: “Two Exchange Court represents exactly the type of opportunity we are looking to secure. Acquiring a building of this quality at a 15.6% yield demonstrates our ability to identify assets with strong fundamentals and higher returns for our investors. We have absolute focus on the quality of the underlying asset and the value we can create through active management.
“As the newest office building on Wolverhampton Business Park and one of the best buildings to the west of Birmingham, 2 Exchange Court provides a quality of accommodation that is increasingly difficult to find in regional markets. Combined with its EPC B rating, excellent connectivity and exceptional parking provision, we believe it is ideally positioned in this market. Our approach has always been to build long-term relationships with occupiers. We want to understand how their businesses are evolving and provide space that can grow with them. This building offers exactly that opportunity.”
Will Rigby, from Knight Frank, which advised Nurton Capital on the acquisition, added: “The property aligns with Nurton Capital’s strategy of acquiring high quality assets with strong upside potential at dislocated pricing, capitalising on current market conditions. The asset is underpinned by strong fundamentals as the newest office building on Wolverhampton Business Park and is let to a long-standing tenant with an excellent covenant.
“The tenant’s ownership of the adjacent building further enhances the proposition, creating a high quality campus-style environment. We wish Nurton Capital every success with the asset moving forward and look forward to seeing the business plan progress.”
The acquisition was financed by Rothschild Bank. Cushman & Wakefield acted for the seller.
