MEPC and Lloyds TSB have agreed terms for an estimated £90m investment and development deal in Birmingham city centre which will see the bank occupy up to 19,694 sq m (212,000 sq ft) in the city.
The deal will involve MEPC’s £55m redevelopment of Lloyds TSB’s regional HQ at 125 Colmore Row and the sale and short-term leaseback to TSB of the 14,028 sq m (151,000 sq ft) Victoria House off Victoria Square.
TSB is thought to have agreed a pre-let of some 13,191 sq m (142,000 sq ft) at 125 Colmore Row and is intending to occupy up to 6,503 sq m (70,000 sq ft) in Victoria House on a short-term basis while the redevelopment takes place. The rest of Victoria House will be put on the market by MEPC.
TSB currently owns both the buildings and put Victoria House on the market at the beginning of the year for about £30m.
MEPC will submit a planning application for the redevelopment of 125 Colmore Row later this month.
Richard Ellis is advising MEPC. Chesterton is acting for Lloyds TSB on the sale of Victoria House. Both agents have been retained as letting agents on Victoria House.
EGi News 06/12/97
