Landmark office block snapped up for £23.7m
ABIRMINGHAM office block has been sold for £23.75 million. Aberdeen Standard Investments has bought 54 Hagley Road, which was designed by renowned Birmingham architect John Madin, from Palmer Capital.
The building has nearly 141,000 sq ft of office space and has recently been refurbished to grade A standard. It is now around 90 per cent occupied.
The current extension to the Midland Metro will also deliver a new stop, which is set to open in 2020, adjacent to the building.
Property consultancy GVA com- pleted the deal on behalf of Aberdeen Standard Investments.
Damian Lloyd, from the agency, said: “54 Hagley Road is a landmark building within the Birmingham commercial market and its position within Edgbaston provides occupiers with a low-density urban setting and proximity to the city centre and associated amenities.
“This is a value add deal, being purchased by a UK institution and is a sign of confidence in the Edgbaston office market now that a number of older office buildings have been re-purposed.
“The sale price represents the level of investment that has already been put into the building by its former owners and, with the New Garden Square development on the other side of Hagley Road due to commence shortly, this will only add further value and drive rental growth at this already valuable commercial asset.”
Oli Lord, deputy fund manager at Aberdeen Standard Investments, added: “This will be the largest asset in the company and meets our aims of buying good quality properties that appeal to occupiers.
“There is good scope for rental growth with plenty of asset management potential and, with a new tram stop due outside the building as part of major infrastructure projects, the connectivity of the building will further improve.”
Also part of the vendor team were SEDCO Capital and Opus Land.
The seller was advised by Savills.