CPF has secured the Secretary of State for Levelling Up, Housing and Communities as a new tenant in the largest office letting on Birmingham Business Park for over two decades. The ownership extends to two detached office buildings totalling approximately 37,000 sq ft which have been let at £24 per sq ft, reflecting a rent of £891,672 per annum, on two new 10 year leases (tenant break at year 5). The rent achieved reflects a significant premium of 33% above the Independent Valuer’s assessment of rental value and almost 50% in excess of the previous passing rent. After an extensive search the Government identified CPF’s two office buildings as their preferred option and they will now invest a significant capital sum to convert the property to a new data centre and 5G testing facility. The rent achieved, quality of the tenant, quantum of tenant capital investment and use as a data centre will all help to drive performance. To facilitate the Government occupying both buildings (one was vacant, the other let to another tenant) we surrendered the lease with the incumbent occupier in return for a cash payment which will be distributed to investors as income.
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