The Secretary of State for Housing, Communities & Local Government acquires 48,787 sq.ft. of commercial space in Birmingham
The Secretary of State for Housing, Communities and Local Government department has acquired 48,787 sq.ft. of commercial space in a landmark office building in Birmingham, in what is understood to be the biggest office deal agreed in Birmingham and the West Midlands since the UK lockdown ended.
The owners of the building known as B1, developers Galliard Homes and Apsley House Capital, have secured the Government department on a 10 year lease at £15.75 per square foot in a deal worth up to £8 million in rental income and were advised by commercial agents Lambert Smith Hampton and Avison Young.
The UK government has not formally confirmed the end use of the property but industry experts believe that the space will provide a significant regional hub for The Department of Work and Pensions.
B1 provides a total of 92,472 sq.ft. of premium office space, with the landmark Government deal leaving only a self-contained suite of 16,500 sq. ft. available to let.
Alex Tross, Director & Head of Office Advisory at Lambert Smith Hampton says: “We are delighted to have successfully negotiated this deal which illustrates the resilience of the Birmingham office market in spite of the wider economic challenges”.
George Jennings, Director at Avison Young goes on to say, “Those challenges will see occupiers even more focused on cost and B1 offers exceptional value alongside a generous parking provision and efficient, column free space that allows occupiers to implement COVID-19 compliant distancing protocols with relative ease”.
Chris Duffy, Acquisitions & Commercial Director at Galliard Homes says: “This is a massive commercial deal for Birmingham and the West Midlands, the largest since the lockdown ended. The decision by the Secretary of State for Housing, Communities and Local Government department to acquire these premises in B1 underline the importance of Birmingham as the second city in the UK and the capital of the Midlands.”
Just a 12 minute walk to Birmingham New Street Railway Station, the striking metallic-silver two storey building is also located on the outer ring road meaning that occupiers should be able to drive to work and avoid Birmingham’s planned Clean Air Zone daily charge.
The Galliard Apsley Partnership was formed in 2016 with the aim of acquiring brownfield sites in the West Midlands to provide high quality mixed-use schemes. The partnership has amassed a sizeable portfolio, with five sites in Birmingham with a gross development value in excess of £500 million.
Developments include Timber Yard, providing 379 apartments which is 75% build complete and over 70% forward sold; Soho Loop, recently granted planning permission for over 750 new homes; St Paul’s Quarter, set to become a residential-led mixed-use scheme of 305 apartments and 100,000 sq. ft. of commercial space, and Belgrave Middleway.
