AshbyCapital has agreed an £81.5m refinancing of Birmingham’s The Colmore Building with DekaBank.
DekaBank has acted as Sole Arranger and Underwriter on a £81.5m three-year term loan refinancing secured on the asset.
The loan is being made available on behalf of clients for AshbyCapital, which is the investment manager for the property.
The offices have been fully let following a refurbishment and rebranding program managed by Ashby in 2016. They comprise 314,000 sq ft of grade A space over 14 storeys as well as amenities including a gym, treatment rooms, GP Surgery, yoga studio and coffee house with tenants including Chubb, Allianz, Investec, Irwin Mitchell, Grant Thornton, Hogan Lovells, Rathbones and Willis Towers Watson.
This facility is DekaBank’s third loan financing in Birmingham in the last 12 months and it said “underlines its ongoing commitment to support key clients investing in ‘best-in-class’ real estate throughout the UK”.
AshbyCapital had appointed Savills and JLL last year to sell the building seeking in excess of £178m, or a yield of 5.2%.
Ashby bought the 329,000 sq ft building in August 2015, when it was known as Colmore Plaza and two-thirds let. It rebranded the property to The Colmore Building, refurbished the reception and common parts and added new facilities including a coffee house, gym, treatment rooms and cycling facilities including luxury changing rooms and a drying room.
The average lease is understood to be eight years to expiry and around £30 per sq ft.