CBRE Global Investors has acquired Birmingham’s Great Western Arcade and Ten Colmore Row from Aviva Investors.
The deal, the price of which reflects an initial net yield of 7.4 per cent, closed at £15.1 million and offers CBRE Global Investors the chance to offer Grade II listed space within the arcade to a number of national and independent retailers.
Existing tenants include The Whisky Shop, Couchoute Chocolaterie and Anderson & Hill Delicatessen, reflecting a strong emphasis on the specialist food and drink market the new owner is reportedly eager to continue.
Along with the 30,948 sq ft, 38 unit Great Western Arcade, CBRE Global Investors also gained Ten Colmore Row, which comprises 21, 457 sq ft of prime office accommodation split over six floors.
The office space, which is located above the arcade, has undergone a great deal of refurbishment in the past 5 years, costing the previous owners a total of £2 million.
CBRE Global Investors was advised by CBRE’s Birmingham based capital markets team throughout negotiations for the deal. Senior director of the team, Ed Gamble, believes the investment group has acquired an asset which has the ability to prove very profitable in future.
He says; “This is a prominent asset which generates an attractive level of income and will be a solid addition to the CBRE UK Property Fund.
“The property combines high quality office space with a Grade II listed Victorian retail arcade, which has the potential for further repositioning through continued improvement to the tenant mix.”
With demand for both office and prime retail space in Birmingham on the rise, it seems that CBRE Global Investors have made a shrewd move in acquiring one of the city’s best located mixed-use properties.
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