Federated Hermes' disposal of a large-scale office in central Birmingham has been named Sale of the Year for the West Midlands in the CoStar Impact Awards after becoming "one of the most significant regional office transactions" of last year.
The landlord instructed Acre Capital Real Estate last year to seek offers in excess of £48.2 million for Baskerville House, reflecting a 8.25% net initial yield for the 195,000-square-foot property, which sits next to the £1.2 billion Paradise mixed-use masterplan.
An independent panel of real estate judges said the successful sale of the site to Dutch group Priory RE around half a year later helped to reinforce market confidence in prime, large‑scale regional office assets "at a time when broader capital markets remained cautious".
The big-ticket Birmingham office deal was also recognised for bringing in a privately‑owned overseas purchaser into the city, helping to reinforce its profile as a high‑performing UK regional centre.
About the project: For Federated Hermes, the transaction represented the culmination of 12 years of strategic ownership, having acquired the building around a decade earlier and investing in its repositioning into a modern office destination.
According to those behind the deal, JLL, who advised the purchaser, oversaw a "compressed transactional timeline", with exchange taking place within two weeks of agreeing terms.
"This rapid execution demonstrated a process anchored in digital diligence, streamlined legal coordination, and pre‑emptive management of building and tenancy documentation," those working on the deal said.
When Baskerville House was put on the block around 16% of the building was vacant, with the remainder occupied by blue‑chip and educational tenants. Federated Hermes' ability to successfully demonstrate the building’s repositioning potential and stable income, despite the partial vacancy, was recognised by the judges.
Those close to the deal also noted that it was completed during a period in which regional office markets faced heightened scrutiny due to hybrid‑working trends and capital‑market recalibration.
What the judges said: Ralph Minott, master planning and development director at Calthorpe Estates, said: "The Paradise and Centenary Square masterplan has brought forward a concentrated collection of world-class, brand new workspaces and leisure amenities; a regeneration that the city of Birmingham experiences every fifty to 100 years.
"Baskerville House, built almost a century ago, opened in 1938 and listed in 2001, lies at the heart of this million plus square feet of state-of-the-art purpose built workspaces, unhampered in their responding to modern post-Covid workspace specification demands, but nevertheless Baskerville has managed and curated an occupational offer that is welcomed despite its 'golden surrounding' counterparts, to be able to achieve this impressive sale.
"The sale represents a belief that quality can always shine, and it remains to see if it surrounding counterparts can hold such regard similarly in 80 years time."
Adam Hunt, head of property development at Coventry City Council, added: "The complexity stood out. Specifically, the complexity of the asset itself in terms of its heritage status, multiple tenancies angle and level of vacancies but also in terms of the office market for a non new build."
They made it happen: Will Nelson, associate partner, Acre Capital Real Estate, seller rep; Ed Gamble, partner, Acre Capital Real Estate, seller rep; Sarah Hume, associate, Acre Capital Real Estate, seller rep and Ben Kelly, director, capital markets, JLL, buyer rep.