Developer sells freehold for city centre offices for £5.6m
BIRMINGHAM-BASED Nurton Developments has sold its freehold interest in a city centre office complex.
Real estate investment company Aprirose has acquired the freehold interest of Cornerblock, in Cornwall Street, for £5.6 million.
The building, at the corner with Livery Street, is 95 per cent let following a £14 million refurbishment in 2017.
Simon Robinson, from consultancy BNP Paribas which acted for Nurton, said: “It’s quite an unusual deal yet, in the current market, it presents a good opportunity for Aprirose. There is the potential for continued rising rental returns as a new high was reached in the city at the end of last year of £33 per sq ft driven by 55 Colmore Row.”
Nurton purchased the freehold for Cornerblock for £3.5 million when it fell vacant and said it felt now was the right time to sell as it was nearly fully let.
Rupert Young, development director at Nurton, added: “The Cornerblock freehold has been a good performer for us without having to outlay significant capital too early.
“Clearly, the interest HS2 is creating in Birmingham, as well as the revival of Colmore Row and the central business district as a new destination, has made the freehold sale a good proposition.
“We felt now was the time to extract our value from the building to put towards future planned projects in the region and across the UK.
“We have a large interest in strategic land at present and plan to continue to invest where the market dictates.”
Manish Gudka, chief executive of Aprirose, added: “There has been an increase of inward investment into Birmingham along with the regeneration of the city centre, underpinned by the prospect of HS2 boosting Birmingham’s status as England’s second city.
“This, combined with the strength of the occupier market, makes Birmingham an attractive location for investment in well-located, highquality office stock.”