Circle signs BE Offices for 36,300 sq ft Brum office

By Paul Norman - Monday, May 14, 2018 12:34

Circle Property has signed serviced office group BE Offices for 36,300 sq ft at Somerset House in Birmingham, taking the building to full occupancy.

BE Offices has taken a 15 year lease at the redevelopment on Temple Street in Birmingham city centre. The agreement follows the recent letting of both ground floor restaurant units and means that the property is now at 100% occupancy ive months after the redevelopment completed.

BE Offices has agreed to take the entire 36,300 sq ft of office space over six floors at the property. The letting increases Circle’s contracted rent roll (as at 31 March 2018) by 11.6% and means that the property will generate a total rental income of £1,231,479 per annum (after rent frees and incentives expire), with upwards only five year rent reviews

Circle Property bought Somerset House in 2016 with the view of undertaking a full refurbishment of the property upon vacant possession, which was due four months after completion. Since then, the company has implemented a comprehensive refurbishment programme to modernise the building.

This included a successful planning application to change the use of the 10,956 sq ft ground floor to restaurants (A3), which led to Circle agreeing long leases with popular Latin American restaurant chain, Las Iguanus, and with Camerons Brewery’s ‘The Head of Steam’ pub concept.

John Arnold, CEO of Circle Property, said: “At Somerset House we saw an opportunity to apply our asset management expertise to this very well located but under invested and out-dated office property. Our strategy was to create a high quality product, well placed to capitalise on tenant demand in Birmingham, while adding much needed leisure usage to Temple Street. We acquired, comprehensively redeveloped and fully leased the building in just two years. Somerset House is a perfect case study for Circle’s strategy, demonstrating our ability to generate income and value by identifying compelling investment opportunities in strong regional locations.”

The signing takes flexible space provider BE into Birmingham for the first time as it looks to expand and grow a regional network.

David Saul, Managing Director of BE, said: “This is an important step forward in our expansion programme. Not only does it take us into Birmingham for the first time but enables us to showcase our entire range of flexible space provision whether it is the more professional corporate offer from BE Offices, the more creative and media orientated co-working Headspace, or the managed space provider BESpoke.”

Saul added that this was likely to be the first of a number of acquisitions across the BE group which demonstrated the underlying strength of the business as it is able to offer a range of different products to the increasingly diverse nature of this fast-growing market.

pnorman@costar.co.uk

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