A prominent office block in the heart of Birmingham's business district has been sold for £26.4 million. 9 Colmore Row has been acquired by Birmingham City Council from UK Commercial Property REIT.
The building, which is one of the first things commuters see when leaving Snow Hill station, has 71,807 sq ft of office and retail space across ten storeys and 64 parking spaces and counts Costa Coffee, art gallery Whitewall and corporate finance firm Clearwater among its tenants.
Birmingham City Council leader Cllr Ian Ward said: "The Colmore Business District and Snow Hill are vital to the economic success and viability of Birmingham city centre, with hundreds of businesses employing thousands of people. As the redevelopment of the area continues to progress in accordance with the Snow Hill Masterplan, the acquisition of 9 Colmore Row is an investment in Birmingham's future success, supporting job creation, investment and growth."
Property consultancy Avison Young acted on behalf of Birmingham City Council on the deal as part of its role as adviser to the authority for its commercial property portfolio.
Damian Lloyd, investment specialist and lead for Birmingham City Council property investment at Avison Young, said: "The opportunity presented by 9 Colmore Row perfectly aligns with Birmingham City Council's property portfolio strategy as well as its aspirations to provide an improved experience for people who work in and visit the city centre.
"The area is undergoing significant transformation, from the continued investment into quality public realm to the large-scale regeneration and development in progress, all eyes are on Snow Hill and its potential to reinforce Birmingham as one of the UK's leading office markets.
"The building's appeal is evident in the strong occupancy of its current space and the council's investment will help it to capitalise on this and generate income to invest back into the local community. We look forward to continuing to explore new opportunities for investment in the future."
Will Fulton, fund manager at UK Commercial Property REIT, said: "The sale of Colmore Row is in line with the company's strategy to reposition its office portfolio towards best-in-class buildings that meet stringent criteria.
"The timing of the sale enables us to crystallise the value we have recently created through active asset management and we will now look to recycle the proceeds into future fit assets with strong growth potential to help deliver earnings growth for shareholders."
JLL, Maples Teesdale and Brown Jacobson also acted on the deal.
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