The acquisitions of Rhodium at Blythe Valley Park, Solihull, and Blake House at Eagle Court Business Park, Birmingham, complete the five transactions Fortix Capital set out at its launch in May.
Fortix Capital – the joint venture between Watson’s Property and SecureHome Group – has exchanged unconditionally on two office buildings on the M42 corridor near Birmingham.
The company has acquired Rhodium, at Blythe Valley Park, Solihull, and Blake House, at Eagle Court Business Park, for a combined price of circa £10 million.
These latest purchases follow the acquisition of a 26-unit residential portfolio at Brindley House in Birmingham’s Jewellery Quarter, with which the firm launched, and the office acquisitions of Aqua in Birmingham and 715 Aztec West in Bristol.
It takes the total value of Fortix Capital acquisitions for the year to date to £20 million, with one further acquisition in the pipeline.
Alex Watson, founding partner of Fortix Capital, said: “Rhodium and Blake House are well-specified buildings in established locations on the M42 corridor, the Midlands’ principal out-of-town office market. Both have had significant recent investment. The existing occupiers in each building give us a sound base, and our priority is securing the right occupiers for the remaining refurbished space.”
James Ackrill, founding partner of Fortix Capital, said: “Rhodium and Blake House complete the five transactions we committed to at launch. Each was selected for the quality of the asset and our ability to manage it well over time. The M42 corridor is one of the best-connected office locations in the country, and the planned HS2 Birmingham Interchange and Arden Cross developments add to its long-term appeal. These are buildings we intend to hold and manage for the long term.”
Rhodium is a 30,000 sq ft Grade A office building with a double-height reception and full-height glazed elevations. It is let to four tenants with excellent covenants including Convergence Group, GKN, Ridge & Partners and Fields & Towers.
The sole vacant suite of 3,300 sq ft will be fully refurbished by Fortix to a high quality, contemporary standard, setting the bar high for achieving increased rental levels at the building.
The building has been decarbonised through a new air source heat pump system and it carries an EPC B rating which Fortix will look to improve upon with the installation of a rooftop PV system.
Blythe Valley Park sits directly off Junction 4 of the M42, four miles from Solihull town centre. Occupiers on the park include Gymshark, Lounge Underwear, Siemens, Tesla, Abbott, ZF and Taylor Wimpey. The building is set within 122 acres of landscaped parkland, with a country park, a Virgin Active gym and health spa and a Busy Bees nursery rated outstanding by Ofsted.
Blake House is a 34,000 sq ft detached office building arranged over three floors, at the entrance to Eagle Court Business Park with frontage to the A45. Built in 1999, it was comprehensively refurbished to a Grade A specification in 2022, with a triple-height glazed reception, a communal business lounge, new VRV air conditioning and end-of-trip facilities including six showers.
The building has roof-mounted solar panels and EV charging and carries an EPC B rating. It is home to Fujitsu’s relocated Midlands operation, with Fujitsu Services occupying the whole of the second floor and part of the first. Two of the three remaining fully refurbished suites are under offer and the final suite is available to let.
Eagle Court Business Park is two miles from Junction 6 of the M42 and 6.5 miles east of Birmingham city centre, with Birmingham Airport and Birmingham International station each around 2.5 miles away.
The NEC, the planned HS2 Birmingham Interchange station and the £3.2 billion Arden Cross development are all close by. Other occupiers on the park include Virgin Media, Rexel and Goldbeck.
With its launch pipeline complete, Fortix Capital continues to acquire across residential and commercial property alongside the active management of its existing portfolio. The firm’s operator-led model combines SecureHome Group’s heritage in property management with Watson’s Property’s record in complex transactions.
Will Higgins of Lambert Smith Hampton acted as agent for Fortix Capital on both transactions, with Victoria Camfield of gunnercooke as its legal adviser. Savills and CBRE acted as selling agents on Rhodium, with Baker McKenzie advising the vendor. JLL acted as selling agent on Blake House, with Forsters advising the vendor.