Midland property group Real Estate Investors has snapped up office buildings at Apex in Edgbaston for £1.69 million in cash.
The two office buildings of 17,420 sq ft let to Lombard North Central (NatWest) and Royal London Life produce annual rental of £353,502 on leases expiring in December 2015, representing an initial yield of 20 per cent.
The properties were acquired from the receivers acting for the mortgagees Capita Asset Services (London). The vendors purchased the properties in March 2005, paying £4.5 million.
The Grade A offices offer headquarters-standard accommodation and occupy a prominent position at the corner of Harborne Road and Calthorpe Road, directly opposite the new Morrisons development at Five Ways.
REI chief executive Paul Bassi said the deal represented good value in the current market, and said there were other potential agreeements in the pipeline.
He said: “REI continues to benefit from having established ‘preferred buyer status’ among receivers, distressed vendors and corporate agents.
“The new acquisitions provide excellent initial income and numerous asset management opportunities.
“The existing portfolio remains stable and secure.
“We have a number of other potential purchases in advanced discussions, and in excess of £250,000 per annum in new rental deals in legals.
“The board looks forward to announcing its inaugural dividends later this year.”