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Size isn't everything, in the Birmingham office market as elsewhere, as a small but perfectly formed deal by Nurton Developments shows what can be done despite the lockdown.
Nurton and partner Hortus Investment have acquired the 36K SF, eight-storey office building at Newater House, Newhall Street, for £5M, Midlands Insider reported.
So why is it so smart? The location is good and getting better: The block is in the Colmore Row business district, opposite Rockspring/Sterling's 26-storey office block at 103 Colmore Row, due for completion in Q3 2020. The block is perfectly positioned to capitalise on a return of location-conscious but value-hunting demand once the coronavirus pandemic is under control, the buyers said.
The buy also fits well into a Birmingham market now experiencing a shortage of good refurbished floorspace. A rolling £3M programme of refurbishment at Newater House will try to help to address that. Office floorspace will be addressed as it falls vacant, whilst a penthouse caretaker's flat will be converted to offices. New lobbies, new toilets and a 2020s makeover for the reception area are also promised.
And whilst Nurton and Hortus pursue their refurbishment, the building, three-quarters occupied, is generating rental income from offices and from Ginger’s Bar & Purnell’s Bistro on the ground floor.
"We have been working on this deal for more than 12 months and being a Birmingham-based business we clearly have a strong understanding of local market dynamics and can assess the medium-term potential to add value and attract occupiers,” Nurton Development Director Rupert Young said.
Strava Consulting introduced the opportunity at Newater House.
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