Ballymore confirms £126m Snowhill sale

Irish developer Ballymore Properties has confirmed the sale of Office Building 1 at Snowhill in Birmingham to Commerz Real Investmentgesellschaft for £126m – reflecting a yield of 6.2%.   The deal was first tipped by Estates Gazette (News,  21 November 2009). Snowhill was put up for sale in September of 2009 for £111m, a 7% yield.   The transaction is the largest investment deal in the city since Carlyle Group paid £150m for Colmore Plaza in late2006.   Eight bids for 1 Snowhill were received, mainly from overseas investors, including Israeli investor Igal Ahouvi and Luxembourg-based fund manager Aerium.   The building is 85%-prelet to KPMG and Barclays, at rents around £33 per sq ft. Ballymore is thought to be providnig a five-year rental guarantee on the 36,000 sq ft of remaining vacant space.   Ballymore said CRI had been drawn to the “superb tenant line up and the sheer quality of the award winning design by Siddell Gibson”.   Richard Probert, Ballymore’s senior development manager, said: “Ballymore intends to build on the success of Office Building 1 by proceeding with the second element of their mixed use scheme at Snowhill later this year.   “Office Building 2 is largely prelet to the biggest UK regional law practice – Wragge & Co – and will be a larger but sister building to Office Building 1.”   Jones Lang LaSalle and Wragge & Co acted for Ballymore and Savills and Norton Rose for CRI. paul.norman@estatesgazette.com