The partnership owns a total of 840,000 sf of property at Brindleyplace in Birmingham, developed in several phases over a decade by Argent. The deal coincides with the completion of the final phase of development, consisting of 279,000 sf of offices in three linked buildings let to the Royal Bank of Scotland.
Overall, Brindleyplace provides 757,000 sf of offices, 32,000 sf of restaurants, bars and cafes, 16,500 sf of retail space, a 34,500-sf health club, a 340-seat theatre and a 903-space multi-story car park. Most of the £21.4 million ($40 million) annual income stream is generated from major occupiers including the Royal Bank of Scotland, British Telecom, Deloitte & Touche and the Post Office with an average lease length of 16 years.
Heremes has a 40% stake in the partnership on behalf of the BT Pension Scheme and Royal Mail Pension Trustees and Argent retains a 10% stake. The average investment value from the 391 private investors has been just over £135,000 ($250,000) with a minimum entry level of £50,000 ($93,000).
Mark Shaw, managing director of Collective Investments which put the consortium together, says: "Private investors rarely have the chance to invest in such a prestigious scheme, alongside institutions, and with an asset manager of proven track record. The success of this scheme has shown the depth of the private investment market and reinforces the need for innovative vehicles to allow the private investor more accessibility to high quality property investment opportunities."
And Argent director Gary Taylor says: "As commercial property looks set to continue to attract interest from all types of investors, the Brindleyplace Limited Partnership is likely to be the first of a new generation of vehicles combining institutional and private money. The response we have had has emphasised that there is a strong appetite for commercial property with private investors and reinforces the need for the introduction of investment vehicles such REITs to increase accessibility for private investors."
Smiths Gore Commercial advised Collective Investments and Jones Lang LaSalle Corporate Finance advised Argent.
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