Legal and General has bought a 36,000 sq ft mixed-use office and retail block in Birmingham from the Crown Estate for £14.5m.
43 Temple Row has been bought on behalf of L&G’s Managed Property Fund and will complete its ownership of a block fronting St Philips Square.
Mark Russell, senior fund manager, said: “St Philips Square is considered a prime location within Birmingham’s central core and benefits from close proximity to good transport links, including Snow Hill Station, New Street Station and Moor Street Station, as well as the new Midland Metro which is anticipated to complete in Q4 2015.
“We are optimistic about rental growth prospects for the right space in the major regional centres and particularly so where significant infrastructure investment is to be delivered.”
The £2.5bn Managed Property Fund was launched in June 1971 and is an open-ended fund available to occupational pension schemes.
Other Birmingham property investments made by LGP on behalf of its funds include the acquisition of No 1 Colmore Square for £87.3m earlier this month, the purchase of Mitchells & Butlers’ HQ offices for £69.5m in July, and 14-28 Corporation Street in June for 16m.
Hannah Milne, head of regional portfolio at The Crown Estate, said: “Sales of non-core assets into strong markets have been key to driving our commercial performance over recent years, helping to provide new sources of capital for investment across our four core sectors.”
Griffiths Eccles acted for The Crown Estate; Knight Frank acted for LGP.
