Egyptian office buy is an EPIC move for Birmingham

                          An Eygpt-based investment firm has bought one of Birmingham’s largest office blocks.   Michael Elghanayan’s EPIC UK has paid Standard Life around £61m for 125 Colmore Row in the city’s prime office core.   Standard Life last month put the 148,000 sq ft office block up for sale for £64m – a 5.5% yield – in a bid to raise cash to pay redemptions from its retail funds.   The building was developed in 2001 and is let to Lloyds TSB at £24.75 per sq ft for a further 18 years. It is the second time in the past six months that EPIC UK has bought property from Standard Life.   It acquired 120 Old Broad Street, EC2, for £27.5m last November.   The investor wants to build a large portfolio of prime, high-quality office blocks in both London and the UK’s major regional cities.   Damian Lloyd, director at GVA Grimley in Birmingham, said: “This deal is hugely significant for the market as there haven’t been many open market investment deals since the credit crunch started.   “Since then, there has undoubtedly been a correction, but people are still shopping. Birmingham’s city centre investment market will hold up well because of its good projected rental growth.”   Franc Warwick advised EPIC UK; GBR Property acted for Standard Life.   lisa.pilkington@rbi.co.uk