Investor acquires major pub operators’ HQ in £46m deal
Mitchells & Butlers’ Birmingham HQ has been acquired in a £46m deal, marking the first purchase from Sterling Property Ventures new asset management and investment arm.
The developer behind 103 Colmore Row has purchased the asset at 27 Fleet Street and 65 Lionel Street from Legal and General Investment Management.
M&B, which operates 1,700 restaurants and pubs under 17 brands including All Bar One, Miller & Carter, Harvester and Toby Carvery, has a 20-year lease on 95,000 sq ft of purpose-built office space in the building, which was developed in 2003.
Accor Group also operates a 54,000 sq ft Ibis Hotel with 125 beds and 325 underground car parking spaces on behalf of M&B.
The deal is one of the largest office-lead investment deals in Birmingham in the last 12 months.
James Howarth, Sterling’s managing director, said: “We are looking to build a portfolio of properties and have raised capital to support this strategy.
“Being sector agnostic in our approach and seeking to complement our development expertise, we believe there is real market opportunity to grow a mixed portfolio of assets and use our skills to add significant value in the short to medium term.”
BSB Real Estate advised Sterling Property Ventures on the transaction and ACRE Capital Partners acted for LGIM.
