Legal & General Property has acquired 1 Colmore Square in Birmingham city centre for £87.3m – a net initial yield of 4%.
1 Colmore Square is a long leasehold multi-let office comprising 202,807 sq ft over 10 floors plus two levels of basement car parking providing 133 spaces.
Tenants include DTZ and EY.
The deal follows hot on the heels of L&G’s announcement last week that it had purchased Mitchells & Butlers’ central Birmingham HQ offices and associated 120-bedroom Ibis Styles hotel on behalf of its LPI fund. The properties were acquired for a total consideration of £69.5m.
L&G fund manager Matt Jarvis said: “A well-positioned trophy asset, 1 Colmore Square offers secure income over the medium term coupled with good rental growth expectations due to the strong and diverse occupational market in Birmingham’s city centre and the added value opportunities on offer, notably the refurbishment and letting of vacant space within the building.”
Launched in 2006, the UKPF has grown from £100m to more than £2.1bn today
CBRE advised the vendors; Knight Frank advised L&G.
