Birmingham independent commercial property agency KWB has sold the freehold of two courtyard office units in Belbroughton, near Bromsgrove in Worcestershire, underlining the demand for freehold courtyard office space.
Acting on behalf of a private pension fund client, Malcolm Jones in KWB’s Office Agency Team, sold the freeholds of a 2,752 sq ft office unit, and of a 1,411 sq ft office unit at Mill Pool, Nash Lane, Belbroughton, Worcestershire, DY9 9AF, at a quoting price of £185 psf.
Existing tenant recruitment firm M&E Global Resources Limited acquired the freehold of the larger unit, while Ashdale Investments Limited bought the freehold of the vacant smaller unit, which it subsequently let to a local occupier following a refurbishment.
Mill Pool is a courtyard office development made up of seven self-contained, purpose-built office buildings, providing quality accommodation over two floors in the affluent village of Belbroughton, located just three miles from Junction 4 of the M5.
Mr Jones says: “These properties had a very high degree of interest, and their sale demonstrates once again the strength of demand for small office freeholds throughout Worcestershire, driven by the desire of business owners to own their office accommodation, and by investors to acquire office space for the around 8% return they can expect.
“Courtyard offices are particularly sought after. In fact, there is a real pent up demand for space in these developments across the West Midlands which has pushed up prices by more than 20% in the past two years and made it worthwhile for developers to start building again.”
Having acted as agent for well in excess of 20 courtyard schemes at KWB, Mr Jones says it is offices between 1,500 sq ft and 3,500 sq ft that are most highly sought after.
He says: “Most business owners are looking to take advantage of acquiring their office building through an individual or directors’ pension fund, via a Self-Invested Personal Pension (SIPP) scheme or a Small Self-Administered Scheme (SSAS). Taking into account the borrowing limits, offices of up to 3,500 sq ft are still generally affordable, especially as the banks are willing to lend and interest rates remain low.”