UAE investor acquires £140m city centre offices
Middle East investor Gulf Islamic Investments (GII) has acquired two office buildings in Birmingham in the UK’s largest office transaction outside of London so far this year.
GII has bought Priory Court and the Lewis Building in Birmingham city centre from Legal & General in a deal “approaching £140m”.
The Lewis Building
The top rent achieved at the refurbished property has been £32 per sq ft, and space has been let to the Ministry of Justice, Spaces, Business Growth Fund and Freightliner.
Will Edwards, senior fund manager at LGIM Real Assets, believes the sale “marks the successful completion of the asset business plan”.
He added: “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.”
GII has a “strong belief in the UK real estate market”, said its co-founder Pankaj Gupta, after agreeing the deal “despite the challenging times and the uncertainty surrounding Brexit”.
Legal & General was advised by CBRE and GII was advised by Rasmala Investment Bank.
Nick Woodward, head of CBRE’s Birmingham investment team, added: “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.”
