Fortix Capital buys two Solihull office buildings for £10m, backing the M42 corridor and HS2

A young property investor has bought two office buildings on the M42 corridor in Solihull for around £10 million, betting on the long-term appeal of an area set to be transformed by HS2's Interchange station and the Arden Cross development.

Fortix Capital, a joint venture between Watson's Property and SecureHome Group, has exchanged contracts on the 30,000 sq ft Rhodium building, bought from Frasers Property Group, and the 34,000 sq ft Blake House at Eagle Court Business Park, bought from Swiss Life. The deal was reported by Place Midlands on 9 November.

Two well-let buildings

Rhodium is let to four tenants: Convergence Group, GKN, Ridge and Partners, and Fields and Towers. Its only vacant space, a 3,300 sq ft unit, is now set to be refurbished.

Blake House, around a mile from Birmingham Airport, is home to Fujitsu's relocated Midlands operation, which occupies the whole of the second floor and part of the first. Two of its three remaining fully refurbished suites are under offer, with the final suite available to let.

"Rhodium and Blake House are well-specified buildings in established locations on the M42 corridor, the Midlands' principal out-of-town office market," said Alex Watson, founding partner of Fortix Capital. "Both have had significant recent investment. The existing occupiers in each building give us a sound base, and our priority is securing the right occupiers for the remaining refurbished space."

A busy first year

The purchase takes Fortix Capital's acquisitions to £20 million this year. The firm launched with a 26-unit residential portfolio at Brindley House in Birmingham's Jewellery Quarter, then bought the Aqua office building in Birmingham and 715 Aztec West in Bristol.

Fellow founding partner James Ackrill said the two Solihull buildings complete the five deals the firm committed to at launch.

"The M42 corridor is one of the best-connected office locations in the country, and the planned HS2 Birmingham Interchange and Arden Cross developments add to its long-term appeal," he said. "These are buildings we intend to hold and manage for the long term."

Confidence in the corridor

The M42 corridor, running past Birmingham Airport, the NEC and business parks such as Blythe Valley Park, has long been the region's main out-of-town office market. The arrival of HS2's Interchange station, with the Arden Cross scheme planned around it, is expected to make it even better connected.

The deal follows a run of confidence in the city region's commercial property in recent days, including the £107 million sale of Three Chamberlain Square at Paradise in the city centre. Long-term owners that plan to refurbish and fill space rather than sell on quickly are good news for the businesses and jobs those buildings house.

Lambert Smith Hampton acted for Fortix Capital on both deals, with gunnercooke as legal adviser. Savills and CBRE sold Rhodium, and JLL sold Blake House.