Western Trading Group has acquired the Cathedral Place office building in Birmingham from Canada Life Asset Management for close to the £2.3m quoting price, in a deal reflecting a net initial yield of 6.34%.
Western Trading Group intends to undertake a comprehensive refurbishment of the 11,378 sq ft Edwardian building, which is located in the heart of Birmingham’s CBD.
Raman Singh, group investment director at Western Trading Group, said: “We’re excited to refurbish Cathedral Place into much-needed boutique Grade A space. With better value emerging across sectors, we are set to grow our portfolio with a strong appetite for further acquisitions this quarter.”
Hapri Yorke-Brooks, senior associate director, investment at BNP Paribas Real Estate, which acted on behalf of Western Trading Group, added: “Cathedral Place is an exceptional asset in the heart of Birmingham’s prime office district. This acquisition further demonstrates that investor confidence is returning to Birmingham’s office market.
“We’re seeing inflows from overseas capital, private equity, and family offices. UK funds are also selectively re-entering the market, driven by the city’s strong fundamentals. With Grade A office supply in Birmingham at just 2.3%, demand for premium workspace remains high, particularly from occupiers seeking plug-and-play solutions in the 1,000 sq ft to 5,000 sq ft range.”
23 acted for Canada Life Asset Management on the deal.
