Property developer St. Modwen has concluded the £6.2m sale of 3 Devon Way, a 21,000 sq ft Grade A office building in the heart of Longbridge Town Centre.
The deal demonstrates the continued investment in Longbridge and marks a major milestone in the regeneration of the town.
The sale to Bradda Capital follows the building’s occupation by independent professional services consultancy Barnett Waddingham, which has relocated its Birmingham office to Longbridge after agreeing a 15-year lease on the building in January 2019 at £19.25psf. The pre-let deal between Barnett Waddingham and St. Modwen was recognised as the biggest out-of-town letting in the region for Q4 2018 and is anticipated to bring over 150 jobs to the town.
Marketed by Savills, 3 Devon Way attracted significant interest from buyers with an appetite for secure, long let, commercial property investments. The building’s location, high-quality design and excellent environmental credentials saw it achieve a net initial yield of 6.25%,
Elliot Sellars, Development Director at St. Modwen, said: “The sale of 3 Devon Way is a major step forward in the regeneration of Longbridge. Not only have we welcomed a fantastic new business in Barnett Waddingham, but we have also welcomed Bradda Capital as an investment partner in the town – one which shares our values and long-term vision for Longbridge.
“This deal highlights the success of Longbridge as a sought-after location for businesses that want fantastic access to transport routes in a vibrant and bustling town centre location. We hope to welcome more businesses to the town as we bring forward additional space in Two Park Square, a proposed 48,000 sq ft Grade-A office building in the centre of Longbridge.”
Matt Jenns, Investment Director at Savills in Birmingham, commented: “The price achieved for 3 Devon Way is testament to the quality of the buildings and the award-winning mixed-use environment that our client has delivered at Longbridge Town Centre. It also demonstrates the strength and depth of demand for long income offices which we have seen in a range of similar transactions in 2020, post the spring lockdown.”
Ben Kelly, Capital Markets Director at JLL commented: “JLL is pleased to have advised Bradda Capital on a number of investment transactions over the last 6 months. 3 Devon Way provides our client with a highly sustainable modern building with the benefit of long term secure income. Longbridge goes from strength to strength and has very positive longer term prospects.”
St. Modwen will also deliver Grade A space at Two Park Square, the latest commercial development which forms part of the regeneration of Longbridge.