Midlands partners Opus Land and Frontier Estates have snapped up two buildings in Waterloo Street, Birmingham, from Scottish Widows for £13.25 million in conjunction with the recentlylaunched Palmer Active Value Fund.
The deal represents one of the largest acquisitions within the last 12 months in a prime location within the city's office core.
The 1960s scheme comprises two adjacent but independent eight-storey buildings of 18,907 sq ft and 32,496 sq ft.
The former is let to four tenants on varying lease terms, producing a total income of £329,148 per annum, whilst the latter is let in its entirety to Royal Insurance on an unexpired lease term of five years, producing a current rental of £446,888 per annum.
The combined income of £777,036 per annum represents only £15 per sq ft overall and offers excellent scope for refurbishment and active management.
GVA Grimley advised the purchaser, whilst Jones Lang Lasalle acted for the vendors.