Legal & General has sold Priory Court & The Lewis Building in Birmingham for almost £140m. The sale to Gulf Islamic Investments represents the UK’s largest office transaction outside of London this year.
The multi-let office property is located in Birmingham’s Central Business District. Since acquiring the property in 2014, Legal & General refurbished and added an additional floor.
Since completing the refurbishment, Legal & General delivered lettings to the Ministry of Justice, Spaces, Business Growth Fund and most recently Freightliner. The top rent achieved at the property was £32.00 per sq ft and the aforementioned lettings delivered significant additional income to property and Fund.
Legal & General was advised by CBRE and GII was advised by Rasmala Investment Bank Ltd.
Will Edwards, Senior Fund Manager, LGIM Real Assets, said: “The sale of Priory Court & The Lewis Building marks the successful completion of the asset business plan and is testament to the skills and capabilities of our team of asset managers. During the hold period, the Fund has repositioned and re-let The Lewis Building, setting a new high rental tone, and the completion of its sale will deliver strong returns to the Fund.”
Nick Woodward, head of CBRE’s Birmingham investment team, commented: “Despite the political uncertainty, this transaction illustrates the sustained appeal of the UK property market, with Birmingham a key target for investors due to the strength of its occupational market and significant growth potential over the next 5-10 years.”