A German open-ended fund has beaten off a rival overseas investor to scoop Birmingham’s largest investment deal this year.
Internationales Immobilien-Institut GmbH (iii Fonds) has bought Abu Dhabi Investment Authority’s 55 Colmore Row in the city centre for more than the £45m asking price, reflecting an initial yield of around 6.67%.
The building has been the subject of an intense bidding war in recent weeks.
Several German funds, including DGI, CGI and DEKA, were interested in the 136,000 sq ft (12,634m2) building but iii Fonds increased its offer at the last minute.
A private Middle Eastern client of ATIS Real Weatheralls is believed to have had the building under offer last week.
Until last Wednesday, the Middle Eastern investor’s offer had been accepted, according to ADIA’s agent on the sale Insignia Richard Ellis.
ATIS Real Weatheralls’ Edward Jones said: “We were ahead and then the deal was taken away from us. Our client is not happy.”
The building is fully let to law firm Wragge & Co and has a roll of £3.2m pa. Wragge is also rumoured to have bid for the building itself.
Steve Benson, head of IRE’s Birmingham office, said: “There was a series of gazumping and re-gazumping.”
GVA Grimley’s Jonathan Hillcox, who advised iii, was unavailable for comment.
