Birmingham's Commercial Property Market Wakes Up
The sun is shining again on the Birmingham commercial property market.
After four months in the deep freeze the city’s real estate business is warming up, with developers pressing ahead with £213M of new build-to-rent schemes, whilst the long-delayed sale of 1 Colmore Square seems to be back on.
The Colmore Square deal has been pending for more than a year. The 203K SF block was on the market in May 2019 with a £100M price tag and a 5.38% yield.
Today investors are said to be circling at a price of £90M, React News reported. This represents a return to less ambitious valuations, and equals the price secured when Barberry sold the building in 2006. The ups and downs of the property market saw LGIM Real Assets acquire the block in 2015 paying £87.3M, a net initial yield of 4%.
Residential developers have also picked up where they left off. Court Collaboration, awaiting planning approval, said that if it is given the green light it will press on with its £93M build-to-rent scheme at New Garden Square, Edgbaston, Business Desk reported. The 400-unit scheme will sit alongside a 618K SF office development by Calthorpe Estate.
Nikal is also returning to the fray, completing its Masshouse development with the appointment of McAleer & Rushe as contractor at the 37-storey, £120M Exchange Square 2 scheme close to the proposed Curzon Street HS2 station.
Building work on the 375-unit build-to-rent scheme is due to complete in 2023, Midlands Insider reported. It has already been pre-sold to BTR specialist Grainger.
