January 24, 2011
Salmon Harvester Opportunity Fund has acquired the freehold investment of 1 Victoria Square, Birmingham from Serviced Office UK for £17.5 million, reflecting a net initial yield of 8.3%.
The 118,529 sq ft office property comprises two interconnected buildings located in the core of Birmingham’s central business district. Tenants include Regus , Lloyds TSB Bank Plc, and the Secretary of State , producing a current rental income £1,536,821pa and with an average rent of £13 per sq ft.
Matthew Meaden, Fund Manager of the Salmon Harvester Opportunity Fund said: “This property offers us numerous opportunities for improvement. The tenant profile is strong but rents are low for such a well located office, there is development potential for hotel and possibly residential use, and there are some voids for us to further increase our returns.”
“Given our strong financial platform in a market starved of debt and equity we are well positioned to make similar significant acquisitions.”
Salmon Harvester Opportunity Fund was represented by Jones Lang LaSalle and the vendor was advised by DTZ.