Property Investment Group Purchase Flagship Office Scheme

An iconic office scheme being spearheaded by Miller Birch in the centre of Nottingham has been sold to a property investment group.

The nine storey, 105,000 sq ft, high quality development on the site of Nottingham City Council’s former Treasury Building near the Guildhall has already been pre-let on a 15 year lease to energy giant E.ON.

And Miller Birch, who will continue to develop the site, today announced a deal with Leicestershire-based Charles Street Buildings Group who have added the scheme to their impressive and expanding property portfolio.
Miller Birch, Development Director, Mark Bielby said: “We are delighted to be working in partnership with Charles Street Buildings.  The letting to E.ON was the largest pre-let to be concluded outside London last year and now we’ve managed to secure the sale of the development for around £30 million at a sub 7 per cent yield.

“When we initially proposed the scheme we were excited by its potential and it is a clear indication of the quality of the development that it has attracted so much interest.”

Charles Street Buildings Group became established in the property sector in the 1950s and now owns over 6,000,000 sq ft of investment property across a range of sectors in and around its home in Leicestershire, the rest of the East Midlands and throughout the UK, including London, Birmingham, Leeds, Sheffield, Newcastle, Edinburgh, Dublin and Guernsey.

Chairman, Hugh Murphy explained: “We continue to expand our portfolio by re-investing rental incomes we receive and we were very keen to conclude the agreement for this landmark office development.

“It fits very well with our range of investments and we have been impressed by everything to do with the scheme.  It ticks all the right boxes: the location is right, the building is right and the deal is right.

“Clearly there continues to be a healthy level of development in Nottingham and this will complement other properties we own in the city at Castle Wharf and Clumber Street.

“We were looking for another landmark office building with a blue-chip tenant in the city and we are very pleased to be working alongside Miller Birch in bringing this scheme to fruition.”

Work commenced on site only recently and construction is set to be completed by August 2012 when E.ON staff will relocate from the company’s existing base in the city.