UAE-based Gulf Islamic Investments has bought an office block in Birmingham for around £149m ($188m) from Legal & General.
The sale represents the UK’s largest office deal outside London so far this year.
The Birmingham property includes two buildings – Priory Court and Lewis Building. Legal & General Property acquired the two office blocks in Birmingham’s central business district in 2014 for £87.5m, a yield of 8.2%.
The two linked buildings total 230,143 sq ft of office space, with Priory Court let to the Birmingham Magistrates Court until 2034. The sale represents the UK’s largest office deal outside London so far.
The GII portfolio in the UK is worth £330m, according to Middle East news site Zawya. The company’s investments in the UK give investors returns of around 8% per year.
Pankaj Gupta, co-founder and chief executive of GII, said: “Despite the challenging times and the uncertainty surrounding Brexit, GII is immensely delighted to expand its investment portfolio in the UK through another high-quality long income yielding asset for its clients endorsing our strong belief in UK real estate market. This transaction reflects well on GII’s growing expertise in acquiring such marquee assets and positions us as an active and major real estate player in the region.”
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