CBRE Global Investors has acquired the Great Western Arcade and Ten Colmore Row in Birmingham from Aviva Investors for £15.1 million.
The Grade II listed retail arcade, comprising 30,948 sq ft of shopping space, is split into 38 units. The Arcade is let to a mix of national and independent retailers, with an emphasis on specialist food and drink. Tenants include wine merchants Loki, The Whiskey Shop, Anderson & Hill Delicatessen, Couchoute Chocolaterie and The Bread Collection.
Ten Colmore Row, comprising 21,457 sq ft of office accommodation over six floors, sits above the Arcade. More than £2 million has been spent on refurbishing the property over the last five years and is home to law firm Trowers & Hamlins, Skanska Construction and UBS UK Properties.
The price reflects a net initial yield of 7.4 per cent.
The acquisition was on behalf of the CBRE UK Property Fund, the principal pooled fund for CBRE Global Investors UK, which invests throughout the UK on behalf of more than 45 institutional investors and has a portfolio of £568 million.
CBRE’s capital markets team in Birmingham advised CBRE Global Investors.
Ed Gamble, senior director in the capital markets team, said: “This is a prominent asset which generates an attractive level of income and will be a solid addition to the CBRE UK Property Fund portfolio.
“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.”