Real estate investment adviser Bradda Capital has exchanged contracts to acquire a prime office building at Trinity Park in Birmingham for £9.6m.
The building, Trinity Central, comprises 25,250 sq ft of space let entirely to Beiersdorf, a supplier of skincare products, for its UK headquarters. Beiersdorf’s lease runs for a further seven years, and the rent is equivalent to £23 per sq ft.
Bradda is acquiring Trinity Central from LondonMetric Property for its second fund, which was launched a year ago with seed funding of £30m from investors in its first fund and is targeting a capital raise of £150m. The net initial yield is 5.75 per cent, rising to 6.5 per cent in March 2023.
David Phillips, managing director of Bradda Capital, said: "Trinity Central is a superb building in a very strong location. It is situated within the prime M42 office market, which is subject to strong tenant demand, restricted supply and robust rental growth.
"The acquisition is a great addition to the fund and reflects our confidence in the long-term future of offices, the economic growth of the Birmingham area, fuelled by improving infrastructure and the future plans for Trinity Park and the surrounding area."
Bradda was advised by Knight Frank and LondonMetric was advised by Savills.