Blake House, Birmingham

2 Hatchford Way, Birmingham, West Midlands, B26 3RZ, UK

Asset Description

Blake House comprises a 36,518 sq ft prominent HQ style detached office building constructed in 1999 and comprehensively refurbished in 2022 to provide high quality modern Grade A office accommodation. The property is situated on the established Eagle Court Business Park, positioned 2 miles west of the M42 at Junction 6 and 6.5 miles east of Birmingham City Centre offering excellent accessibility to key transport hubs, including Birmingham Airport, Birmingham International Station and the upcoming HS2 station.

The property is arranged over ground, first and second floor, providing flexible office floorplates accessed via an impressive triple-height glazed reception, leading to a contemporary communal area complete with a kitchen and collaborative breakout space. 2 passenger lifts and feature staircase provide access to upper floors.

The recent refurbishment completed in 2022 at a cost of approximately £2.8 million, which saw the property transformed to provide a high quality modern office scheme. The refurbishment delivered a new high quality Grade A office specification and finishes throughout, new VRV air conditioning, upgraded reception and newly installed communal business lounge and end of trip amenities. Additional works to deliver an upgraded power supply were also undertaken at extra cost.

Externally, there is extensive car parking with 136 car parking spaces providing an attractive ratio of 1:252 sq ft, including 6 EV charging spaces, an additional 4 motorcycle spaces and cycle store. Fujitsu have a right to use 72 car parking spaces inclusive of 3 EV charging spaces.

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Attributes

Building area gross

3,393 m²

EPC

Grade B

Year renovated

2022

Media

Investment Highlights

• Newly refurbished prime Birmingham out of town office investment opportunity, with value add potential and entry pricing significantly below replacement cost

• Core out of town location within Birmingham’s M42 corridor, one of the Midlands’ premier commercial hubs positioned at the heart of the UK transport network

• Eagle Court Business Park benefits from close proximity to Birmingham Airport, Birmingham International Railway Station, the future Birmingham Interchange HS2 Station and the M42 motorway

• Blake House comprises a newly refurbished 36,518sq ft prominent HQ style detached office building

• Extensive £2.8m refurbishment completed during 2022 has delivered a new high quality Grade A office specification and finishes throughout, new VRV air conditioning, upgraded reception and newly installed communal business lounge and end of trip amenities

• Strong ESG credentials with EPC B rating, roof mounted solar panels and EV charging facilities

• 136 car parking spaces, including 6 EV charging spaces and additional 4 motorcycle spaces, providing an attractive ratio of 1:252 sq ft

• Long leasehold from Birmingham City Council for a term of 150 years from 11 October 1999 (124 years unexpired) at a peppercorn rent

• Currently 51% let, 49% vacant by floor area, presenting an excellent opportunity to complete lease up of accommodation and capture a strong reversionary income uplift

• Recent letting to high quality occupier Fujitsu Services Limited has been completed for a 10 year term with tenant break options in the 5th and 7th year, on part first and all of second floor

• Fujitsu is one of the world’s largest IT providers with over 124,000 employees located in over 100 countries. Blake House is home to Fujitsu’s principle relocated Midlands operation

• Vacant space is offered to market as is, with no vendor guarantee and in a ready to let condition

• Total current rent of £357,780 per annum, reflecting a low rent of £20.00 psf on the Fujitsu letting, with prime M42 rents now in excess of £30.00 psf

• Estimated rental value once fully let in excess of £700,000 per annum, offering immediate value add potential

Proposal

We are instructed to seek offers in excess of £4,400,000 (Four Million and Four Hundred Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects an attractive in place net initial yield of 7.63%, and an extremely low capital value of £120.49 per sq ft, significantly below replacement cost.

This pricing shows an attractive reversionary yield once fully let of close to 15.00% based on today’s open market ERV, with further rental growth predicted.