Chelsfield Sells Birmingham Portfolio

LONDON-Chelsfield has raised £20 million ($34 million) with the sale of five Birmingham office investments. The five properties, held on long leases from the Calthorpe Estate, total over 200,000 sf and include 1 and 2 Duchess Place, Edgbaston House, Regency House and a site at 34 Duchess Road, all in the Hagley Road area of Edgbaston. The purchase reflects a net initial yield of 8.75%.

1 Duchess Place totals 32,000 sf let to BPS Associates at an annual rent of £457,963 ($765,000). 2 Duchess Place provides 46,175 sf let to the Secretary of State for Transport until 2014 at an annual rent of £464,243 ($775,000). Edgbaston House, Hagley Road, is a multi-let property of 103,250 sf with tenants including Chelsea Building Society, Allied Dunbar Insurance, Mapeley and Yell. The property produces a net income of £883,444 ($1.475 million) per annum. And the 23,000-sf Regency House, Hagley Road, is multi-let to Thomson Rudd Group, West Port Private Equity and CJE Wilkinson among others. The property produces a net income of £110,823 ($185,000) per annum.

MCV was represented by Mason Philips and KWB. The Calthorpe Estate was represented by DTZ Debenham Tie Leung.