City centre office complex is bought for £95 million
APROMINENT Birmingham city centre office complex has been bought for £95 million.
Pension fund RPMI Railpen has bought connected buildings, 2 Colmore Square and Cannon House, from Nurton Developments.
The block is 95 per cent let and counts law firm Shoosmiths, Swedish bank Handelsbanken and business support group Energy Systems Catapult among its tenants.
Anna Rule, head of property at RPMI Railpen, said: “The building’s proximity to the new HS2 Curzon Street station, the low rents and the asset management opportunities that exist provide long-term opportunities for growth. This purchase meets all of our core investment themes and will help to meet our mission to pay members’ pensions securely, affordably and sustainably.”
Rupert Young, development director at Nurton Developments, added: “We’re proud of what we achieved with the back-to-frame refurbishment of this significant asset. Having completed the vast majority of our business plan, now is an appropriate time to recycle the capital and look for new value add opportunities.”
Property consultancy GVA and asset manager V7 acted for RPMI Railpen while consultancy CBRE represented Nurton Developments.
Damian Lloyd, senior director at GVA, said: “This is a real coup for the market and further demonstrates that Birmingham is a location that can support significant deals such as this.
“This building represents a truly great asset and one that is reflective of the profile of Railpen as a major UK institution.”
Nick Woodward, senior director at CBRE, added: “This deal is a great example of how a leading Midlands property company has taken a vacant office building and transformed it over a number of years into an institutionally acceptable asset, capitalising on the strength of demand for highquality Birmingham office investments.”