News Archive

St Modwen sells highways agency investment at Quinton

Building One at Quinton Business Park, Birmingham, occupied by the Highways Agency for use as the Co-ordination Centre for motorway incidents,has been sold by St Modwen Properties PLC to Standard Life Assurance for £5.5 million.

The 2,322 sq m (25,000 sq ft) building, which is being fitted out and will be ready for occupation by the end of the year, is one of three buildings totalling 5,109 sq m (55,000 sq ft) which comprise the first phase of St Modwen’s flagship project alongside the M5 at Junction 3.

It has been taken by the Highways Agency on a 25-year lease at an annual rent of £16.50 per sq ft and the sale represented an initial yield of 6.25%. St Modwen represented itself. Lambert Smith Hampton acted for Standard Life.

Derek West of St Modwen, describing the deal, said: “The first class location at Junction 3, the quality of the environment of the park allied to a top notch building meant we could get a blue chip tenant and then an outstanding investment sale. Quality really does pay off.”

Construction of the speculative 4,645 sq m (50,000 sq ft ) second phase is well underway and the accommodation will be available from next March. There is a significant level of interest in the current phase. The three-storey 2,787 sq m (30,000 sq ft) building is available in floors or part floors. Five companies have expressed strong interest in the two two-storey 929 sq m (10,000 sq ft) buildings.

St Modwen, encouraged by the current market interest, is planning a third phase of 4,645 sq m (50,000 sq ft) . Quinton Business Park will total 23,225 sq m (250,000 sq ft) when completed.

DTZ Debenham Tie Leung is letting agent for St Modwen.

For further information contact Derek West (0121-456-2800).

Issued by Paul Raymer of Howle Chapman Raymer (0121-236-7771).