Galliard Homes and Apsley House Capital (The Galliard Apsley Partnership) have sold the B1 office building on Summerhill, Birmingham, in a £23.5 million deal.
The joint venture partners have agreed the sale with Kamco Invest Group and M7 Real Estate (M7), which have acquired the property as part of a commercial investment portfolio.
B1 comprises 92,472 sq ft of office space, plus a 206-space surface car park, contained within a four-acre site, which is bounded by Summer Hill Road, Powell Street, Camden Street and the A4540 Icknield Street.
The building is fully let to The Department for Work & Pensions and Birmingham and Solihull Mental Health NHS Foundation Trust on long term leases.
In June 2020, the DWP signed a ten-year lease on 48,787 sq ft at B1, which at the time of completion was largest office letting to be agreed In Birmingham since the start of the first Covid-19 national lockdown.
Chris Duffy, commercial director at Galliard Homes, said: “The Galliard Apsley Partnership acquired the development in 2018, initially with the intention of redeveloping the site into a residential scheme. However, with Birmingham attracting significant inward investment and interest from companies looking to base themselves in the city, as well as the north-shoring of Government departments from London, we decided to retain and refurbish the building for use as office accommodation.
“This decision was justified with the letting to the DWP, which was achieved despite the challenges posed by the global pandemic. With the building fully let, B1 is a real commercial success story.”
M7 Real Estate specialises in pan-European, regional, multi-tenanted commercial properties including offices, industrial and retail. It currently manages 570 assets on behalf of its investors across Europe with a value of circa €4.1 billion.
The deal was brokered by Knight Frank and Tydus Real Estate, acting on behalf of The Galliard Apsley Partnership.
Jamie Baruch, director at Tydus Real Estate, said: “The sale of B1 demonstrates that there continues to be investor appetite in the office sector for properties with secure income streams, which are also underpinned by vacant possession value for alternative uses.”
Ashley Hudson, partner and head of office at Knight Frank in Birmingham, added: “We are delighted to have worked with The Galliard Apsley Partnership on another successful transaction in Birmingham.”
The Galliard Apsley Partnership was formed in 2016 with the aim of acquiring brownfield sites in the West Midlands to provide high quality mixed-use schemes. The partnership has amassed a sizeable portfolio, with five sites in Birmingham with a gross development value in excess of £500 million.
Developments include Timber Yard, providing 379 apartments which is 80% sold and scheduled for completion in Autumn; Soho Loop, a canal-side development of 750 new homes, currently under construction; St Paul’s Quarter, a residential-led mixed-use scheme of 305 apartments and 100,000 sq. ft. of commercial space, and Belgrave Middleway, a proposed residential development of 438 homes.