Nurton Capital has completed the acquisition of 2 Exchange Court at Wolverhampton Business Park for £4.25 million through a joint venture between Nurton Developments and a private capital partner.
The acquisition, which secured a net initial yield of 15.6%, is one of several transactions currently being progressed by Nurton Capital as it continues to deploy capital into opportunities where active asset management, ESG enhancement and occupier-focused leasing strategies can unlock long-term value.
The modern, Grade A office building, rated EPC B, extends to 24,606 sq. ft and occupies a prominent position on Wolverhampton Business Park, one of the West Midlands’ premier business locations.
As part of the transaction, Nurton Capital also acquired an adjacent overflow car park, significantly enhancing the property’s parking provision, making it more attractive to future occupiers.
Located immediately adjacent to Junction 2 of the M54 and within easy reach of the M6, the property benefits from excellent regional and national connectivity.
The building is currently occupied by specialist lender OSB Group. While the relatively short unexpired lease term presented an opportunity to acquire the asset at attractive pricing, Nurton Capital believes the quality of the building, its location and its flexibility positions it well for the future.
Ashley Hudson, managing director of Nurton Capital, said:
“2 Exchange Court represents exactly the type of opportunity we are looking to secure. Acquiring a building of this quality at a 15.6% yield demonstrates our ability to identify assets with strong fundamentals and higher returns for our investors. We have absolute focus on the quality of the underlying asset and the value we can create through active management.
“As the newest office building on Wolverhampton Business Park and one of the best buildings to the West of Birmingham, 2 Exchange Court provides a quality of accommodation that is increasingly difficult to find in regional markets.
“Combined with its EPC B rating, excellent connectivity and exceptional parking provision, we believe it is ideally positioned in this market.
“Our approach has always been to build long-term relationships with occupiers. We want to understand how their businesses are evolving and provide space that can grow with them. This building offers exactly that opportunity.”
Will Rigby from Knight Frank, which advised Nurton Capital on the acquisition, said:
“The property aligns with Nurton Capital’s strategy of acquiring high-quality assets with strong upside potential at dislocated pricing, capitalising on current market conditions.
“The asset is underpinned by strong fundamentals as the newest office building on Wolverhampton Business Park and is let to a long-standing tenant with an excellent covenant. The tenant’s ownership of the adjacent building further enhances the proposition, creating a high-quality campus-style environment.
“We wish Nurton Capital every success with the asset moving forward and look forward to seeing the business plan progress.”
The acquisition was financed by Rothschild Bank.
Knight Frank acted on behalf of Nurton Capital in the acquisition, while Cushman & Wakefield acted for the seller.