London 18/08/2014 – CBRE Global Investors has completed the purchase of the Great Western Arcade and 10 Colmore Row in Birmingham for GBP15.1 million. The vendor was Aviva Investors.
This transaction is on behalf of the CBRE UK Property Fund – the principal pooled fund of CBRE Global Investors UK – which invests throughout the UK on behalf of over 45 institutional investors and has a portfolio of GBP568 million.
The holding totals 52,405 Sq ft combining a 38 unit Grade II listed retail Arcade (30,948 Sq ft) with an office building (21,457 Sq ft over 6 floors). The property is situated opposite Snow Hill Station in Birmingham’s prime business district. The Arcade is unique within the city and attracts a range of leading boutique & specialist retailers.
The income yield at purchase is 7.4% after allowance for costs.
Commenting on the transaction, Matthew McDonald, Fund Manager of UKPF, said: “This acquisition is a solid addition to the portfolio as we have secured a prominent asset which generates an attractive level of income.”
“The holding combines some great office space with an Arcade that has potential for further re-positioning through continued improvement to the tenant mix. Generally, we believe the asset will benefit from the improvements taking place in Birmingham City centre. ”
CBRE Global Investors was advised by CBRE. The vendor was advised by Lewis Ellis.
The CBRE UK Property Fund recently acquired a logistics distribution unit in West Thurrock for GBP 18.15 million which was the first acquisition for the fund since the merger with CBRE UK Property Income Fund.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $92.8 billion in assets under management* as of June 30, 2014. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has approximately 44,000 employees in approximately 350 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
CBRE Global Investors (UK Funds) Limited is authorised and regulated by the Financial Conduct Authority
*Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.