Praxis Acquires npower Headquarters in Solihull for £12.5 Million
Praxis, the acquisitive UK-focused real estate investor, has completed the acquisition of npower’s 70,870 sq ft headquarters building in Solihull town centre for £12.5 million (£176 per sq ft), delivering a day-one net initial yield of 12%. Praxis acquired the asset all-equity.
The modern office building has served as npower’s registered UK headquarters since 2003 and is strategically located within a five-minute walk of Solihull station in the town centre. The property benefits from strong car parking provision, with 425 spaces, and houses over 800 staff, including npower UK’s entire senior board, following recent office consolidations.
Praxis has been one of the most active investors in the UK regional office and retail sectors, having acquired over £700 million of assets post-covid, including the acquisitions of the Brindleyplace Estate in Birmingham and the St Enoch Shopping Centre in Glasgow.
Head of Capital Markets at Praxis, Calum Hulme commented:
“Single-let offices to investment-grade covenants remain one of the most attractive risk-adjusted opportunities in UK commercial real estate, particularly where high day-one yields are combined with entry prices significantly below historic peaks and replacement cost, in locations underpinned by strong supply-demand fundamentals.
This acquisition demonstrates the compelling value proposition of this strategy. The combination of a town centre location, low passing rent, significant recent tenant capital expenditure, an investment-grade covenant, mission-critical use, and a 12% day-one yield creates a highly attractive risk-return profile.
Solihull office take-up reached the highest level since 2019 in 2025, whilst Grade A vacancy remains exceptionally tight with no comparable self-contained buildings available. The property’s excellent transport connectivity and superior parking provision in Solihull’s supply-constrained office market provides multiple additional layers of downside protection. The acquisition further evidences the Praxis USP: we know what to buy, what to pay, and what to do with it once we’ve bought it.”
Praxis currently has a further £100m of assets under offer and in solicitors’ hands.
Praxis was advised by Savills.
