German fund manager Union Investment Real Estate has completed the purchase of the One Snowhill office block in Birmingham.
In one of the largest regional deals this year, the 264,000 sq ft trophy building was sold for circa £125m by Commerz Real.
The purchase has been financed through Union Investment’s Europa fund, which comprises three UK properties totalling €520m.
The office block has a small amount of available space – circa 10,000 sq ft. It is let predominantly to KPMG, Barclays and law firm DWF on 15-year leases and produces an annual rent of £8.2m.
“We are acquiring one of the best office buildings outside London in One Snowhill,” said Martin Brühl, head of international investment at Union Investment.
“After investments in Manchester, Glasgow and most recently Cardiff, this opens up another important regional location in the UK, thereby continuing an investment strategy that is adapted to the growing strength of the London investment market.”
Commerz Real paid £126m for the property in January 2010.
Savills represented Union Investments, while Jones Lang LaSalle advised Commerz Real.
lisa.pilkington@estatesgazette.com
