Knight Frank has advised on the largest investment deal to be concluded in Birmingham in the last 12 months.
The Department for Constitutional Affairs has sold its long leasehold interest in Priory Court on Bull Street, Birmingham.
The property is Birmingham?s main civil court rooms and comprises approximately 125,000 sq ft of office accommodation over six floors plus basement car parking and incorporates eleven magistrates courts.
The DCA has agreed a non-assignable 30 year FRI lease incorporating minimum agreed uplifts at the first three rent reviews. The rent equates to #25.50 per sq ft.
The long leasehold interest has been sold to the freeholder who is believed to be a private Israeli investor, and was represented by Blanford Goldsmith & Co.
The property, which lies within a Stamp Duty exemption area, sold for #58 million, which equates to a net initial yield of approximately 5.3 per cent.
Mark Swallow, head of Knight Frank Birmingham office acted on behalf of the DCA.
He said: ?The deal is indicative of the Government?s policy to release equity held in property and reinvest in public expenditure and service delivery.
?This sale demonstrates the market is prepared to pay keen yields for the benefit of British Government income.? It follows the recent take up by the DCA on behalf of the Court Service of two floors of PricewaterhouseCooper?s Temple Court building.