Hillview Real Estate, the UK regional office investor, and Sh.i.r. Shlomo Real Estate, a subsidiary of one of the largest conglomerates in Israel, have completed their second joint acquisition with the purchase of a multi-let office investment in the centre of Birmingham from DTZ Investors for £21 million.

The investment, Edmund Gardens, comprises five buildings around a central courtyard totalling 67,510 sq ft, on an island site in the centre of Birmingham’s business district. It has a principal frontage to Edmund Street, which runs parallel to Colmore Row, and is mid-way between the office hubs of Snowhill and Paradise.

This mixed-use estate consists of 80% multi-let offices, catering to a wide range of occupiers with additional retail,  food & beverage and residential units. The weighted average unexpired lease term to expiry is 4.7 years and average office rent is £23/sq ft, compared with prime Birmingham rents of £40/sq ft.

Hillview Real Estate, which is investing through its £300 million Hillview Partners Property Fund III, plans to significantly improve the office, retail and residential offering through active asset management and a programme of capital expenditure, ensuring they meet the needs of modern occupiers and achieve the highest standards of sustainability.

This is the second acquisition for the  partnership between Hillview Real Estate and Sh.i.r.  Shlomo Real Estate to establish a portfolio of regional office properties in the UK. The first was the purchase in June of 76 Wellington Street in Leeds for £12.6 million.

The partnership leverages Hillview Real Estate’s strong origination network across the regional cities to acquire well-located, multi-tenanted, institutional-quality properties in key cities and regions with favourable supply-demand dynamics. Utilising Hillview Real Estate’s asset management expertise and established track-record, these properties will be repositioned to a high environmental standard, providing occupational flexibility and a wide array of amenities for tenants, including technology-enabled systems, digital connectivity, and landscaping.

Sh.i.r. Shlomo Real Estate Ltd, a company traded on the Tel Aviv Stock Exchange, has been investing since 2011 both in Israel and in Europe, mainly in offices, hotels, and industrial properties. It is a part of the Shlomo Group, one of Israel’s leading and best-established investment groups, employing more than 5,000 people with a number of operational divisions in the transport, insurance, finance, infrastructure, construction, shipping, logistics and real estate sectors. The group operates in Israel, Romania and Germany, generating annual revenue of around €2 billion.

Hillview Real Estate was advised by JLL and DTZ Investors was advised by BNP Paribas Real Estate.

Nadav Livni, Managing Director of Hillview Group and Fund Manager of Hillview Real Estate, said: “This is a really interesting value-add acquisition for our Fund and new partnership with Sh.i.r. Shlomo Real Estate. I am proud that, despite the current market volatility, we were able to successfully complete the transaction.

“The building is very well located in the heart of Birmingham’s financial district, is under-rented and provides a good blend of income with the opportunity to increase rents by refurbishing any space vacated by tenants and enhancing the offering to tenants”.

 

FOR FURTHER INFORMATION:

Hillview Real Estate:

Nadav Livni

020 7318 8000

nadav.livni@hillview-group.com

 

Tavistock (PR adviser):

James Whitmore

07740 931042

james.whitmore@tavistock.co.uk

 

 

NOTES TO EDITORS:

Hillview Real Estate

Established in 2006, Hillview Real Estate invests in commercial and industrial real estate in the UK with a focus on core plus and value-add assets, well-located in key cities and regions with favourable supply and demand dynamics. Hillview Real Estate is part of Hillview Group, which is an alternative asset management firm focused on asset-backed sectors in the UK and US. The company’s team of highly experienced investment and asset management professionals blends origination, financing and active management skills. For further information, go to https://hillview-re.com/