GVA advises on acquisition of 54 Hagley Road for Standard Life

GVA has completed the acquisition of 54 Hagley Road in Birmingham on behalf of client Aberdeen Standard Investments.

The building was acquired from Palmer Capital for £23.75 million, representing a net initial yield of 7.70%.

Recently refurbished to Grade A standard, 54 Hagley Road has 140,951 sq ft of offices with a current occupancy rate of c.90% and average rents of £13.34.

Situated within the Edgbaston area of the city and only a short walk to Five Ways train station, the building’s position on Hagley Road provides direct access by car, with 226 on-site parking spaces.

The current extension to the Midland Metro will also deliver a new stop adjacent to the building, set to open in 2020, providing direct connections to the CBD and city centre.

GVA acted on behalf of Aberdeen Standard Investments in completion of the deal.

Damian Lloyd, GVA, said: “54 Hagley Road is a landmark building within the Birmingham commercial market and its position within Edgbaston provides occupiers with a low-density urban setting and proximity to the city centre and associated amenities.

“This is a value add deal, being purchased by a UK Institution and is a sign of confidence in the Edgbaston office market now that a number of older office buildings have been re-purposed.

“The sale price represents the level of investment that has already been put into the building by its former owners and with the New Garden Square development on the other side of Hagley Road due to commence shortly, this will only add further value and drive rental growth at this already valuable commercial asset.”

Oli Lord, Deputy Fund Manager at Aberdeen Standard Investments, said: “This will be the largest asset in the company, and meets our aims of buying good quality properties that appeal to occupiers.

“There is good scope for rental growth with plenty of asset management potential, and with a new tram stop due outside the building as part of major infrastructure projects the connectivity of the building will further improve.”

SEDCO Capital, Palmer Capital and Opus Land were advised by Savills.

Sherif Selim, Head of Real Estate, Sedco Capital, said: “The continued strength of the UK real estate market provided us with an opportune time to monetize our position in this asset and deliver value for our investors.”

Victoria Turnbull, Joint Managing Director of Opus Land commented: “Opus Land are delighted to have orchestrated the successful acquisition, asset management and disposal of this landmark building in Edgbaston and we wish the purchaser continued successes with the asset”.

Matt Jenns, Savills said: “The sale of 54 Hagley Road to Aberdeen Standard concludes Palmer Capital and Opus Land’s asset strategy. The property was acquired at a turning point for the Edgbaston office market and the ongoing asset management by our client through this important transitional phase has resulted in a successful sale to a UK Institution”.

This is the latest investment deal that GVA has advised on, having earlier completed the largest investment transaction of the year in the acquisition of One Colmore Square and Cannon House for £95 million on behalf of RPMI Railpen.