St Modwen has sold the Two Devon Way office building at Longbridge Technology Park in Birmingham to UKO Serviced Offices, a subsidiary of UK Land, for £3.75m.
The purchase price reflects a net initial yield of 10.06% and an anticipated reversionary yield of 15.74% once the remaining 10,000 sq ft of space is let.
Built in 2007, the 29,479 sq ft office building has an EPC A rating and is let to St Modwen Homes and Wardell Armstrong.
Mark Johnson, director in MK2’s investment team, which acted for St Modwen on the sale, said: “Longbridge is emerging as something of a hotspot in the M42 office market, with occupiers favouring its fast transport links, good local labour supply and excellent ESG credentials. Product doesn’t come up too often here, so interest in this freehold investment opportunity was keen.”
Harris Lamb advised UK Land on the acquisition.
