Property overview

Atlas Real Estate has recently completed the acquisition of NPower’s Midlands HQ office on behalf of Fidelity International.

The property is located in Solihull town centre and comprises a 2003 built Grade A HQ office building set out over four floors and extending to 70,956 sq.ft.  The building is served by a multi storey car park to the rear elevation providing 220 car parking spaces.    

The property is let in its entirety to NPower Ltd, guaranteed by RWE Generation Plc, on a full repairing and insuring lease expiring on 31 December 2018.  The current rent is £1,485,000 per annum which equates to £19.37 per sq.ft and £500 per car parking space. 

The purchase price of £19,900,000 represents a net initial yield of 7.05% assuming costs of purchase of 5.80%.

Ben Blackwall, Director at Atlas Real Estate comments ‘This is a high quality office building located in the centre of Solihull and very close to the town’s train station.  Solihull is seeing an unprecedented demand for office space at present with up to 690,000 sq.ft of active requirements in the market.  There is also very little available office space with only one building in the market offering quality office space over 50,000 sq.ft.’

The vendor, Irish Life, was represented by Savills.