Legal & General Property has acquired two office blocks in Birmingham’s central business district for £87.5m – a yield of 8.2%.
Priory Court and Temple Court in Bull Street have been acquired by the fund on behalf of its second UK Property Income Fund (UK PIF II) from the Co-Operative Bank.
The sale is being handled via receivers at Knight Frank appointed by the Co-operative Bank.
Priory Court (pictured) was under offer to Canada Life in January, before the deal collapsed. It then went under offer in February to a Singaporian private investor but the deal never signed.
The two linked buildings total 230,143 sq ft of office, with Priory Court let to the Birmingham Magistrates Court until 2034. Temple Court is mainly let to PwC until December this year – but the accountancy firm no longer occupies the building. Around 6,200 sq ft of retail and an 11,000 sq ft Wetherspoon pub also form part of Temple Court.
Total passing rent is £7.6m pa.
lisa.pilkington@estatesgazette.com
