Canada Life Investments is frontrunner to buy one of Birmingham’s biggest investment opportunities.
It is in advanced talks to buy the 134,600 sq ft Priory Court from UK-based private investment company PIRT for around £73m, reflecting a net initial yield of circa 5.75%.
Aviva Investors, GLL Real Estate Partners, Legal & General Property and a Singaporean investor were all in the running to buy the property.
The building has a strong ?covenant as it is let in its entirety to the government, which has ?20 years left on its lease, with two minimum increases remaining.
The passing rent is to be topped up to £4.3m pa in the February 2014 rent review.
Pub chain JD Wetherspoon has 16 years remaining on its ground-floor lease of the 9,300 sq ft Square Peg, on which it pays a passing rent of £200,000.
The building, which fronts onto Corporation Street, includes 26 law courts and associated back-office functions and forms part of the Priory ?and Temple Court development and the Minories shopping centre.
Knight Frank is advising the vendor.
nick.whitten@estatesgazette.com
