US investor swoops for prime Birmingham office building in £182m deal

Property investor Blackstone has entered the UK’s regional office market after buying the Colmore Building in Birmingham for £182m.

The US firm has swooped for the 314,000 sq ft office block, after agreeing a deal with Ashby Capital.

The deal is Blackstone’s first office acquisition outside of London in the UK.

James Seppala, head of real estate Europe at Blackstone, said: “We continue to see strong demand for high quality, sustainable office spaces that attract the best talent and employers. This investment is a vote of confidence in Birmingham, its thriving commercial heart, and the wider West Midlands. It underlines our commitment to long-term investments that will help build the UK’s economy for the future.”

Knight Frank advised Blackstone.

Ashby Capital bought the Colmore Building in 2015 for £140m, and has been looking to sell the site for some time.

Tenants in the Colmore Building include West Midlands Growth Company, Chubb, Allianz, Investec, Irwin Mitchell, Hogan Lovells, Rathbones and Willis Towers Watson.

Peter Ferrari, chief executive of AshbyCapital, said: “Having purchased The Colmore Building in 2015 when it was 40% vacant, this sale marks the successful completion of our asset strategy. We acted quickly to carry out an enhancement programme that gave the building Birmingham’s most comprehensive offering of on-site amenities and leased the vacant space at market-leading rents.”