:no_upscale():quality(75))
The 81.5K SF office building at 5 St Philip's Place, Birmingham, looks set to change hands at price close to the boom-time peak, according to market sources cited by CoStar, who say Royal London Asset Management are the buyers.
The reported sale price of £47M, at a yield of 4.5% shows how close the market has come to pre-recession values. New Star Property Unit Trust bought the block at the height of the boom in October 2006, paying £49M, a net initial yield of 4.25%.
A series of subsequent sales showed the steady erosion of value as the economic cycle turned. By March 2009 the market had crashed and Climate Change Capital acquired the block from New Star for £31.5M.
In 2014 5 St Philip's Place was sold by Climate Change Capital to Savills Investment Management for £38M.
The St Philip's Place deal comes after it emerged that TH Real Estate is in talks to buy IM Properties' 160K SF 55 Colmore Row for £100M, at a yield also reported by CoStar to be below 5%.
:quality(80))
:quality(80))
:quality(80))
:quality(80))
:quality(80))
:quality(80))
:quality(80))
:quality(80))
:quality(80))
:quality(80))
:quality(80))
:quality(80))