Chinese enter central Birmingham office investment market as sell-offs continue

CENTRAL Birmingham office building Quayside Tower has been sold to Chinese investors for £7m.

It is the first Chinese investment in the Birmingham city centre office market.

Property magazine Estate Gazette revealed Peng Global Holdings and a private Chinese investment partner have bought the leasehold of the 133,000 sq ft building on Broad Street from CBRE Global Investors for a net initial yield of 20.8%.

Quayside Tower, which was built in 1966 and refurbished in 2003, comprises 97,000 sq ft of offices and 36,000 sq ft of shops.

It also has a multi-storey car park with 230 spaces.

Quayside tenants include HIBU (UK), Regus, Signalling Solutions and Broad Street Partnerships.

Colliers International advised Peng on the purchase and has been retained as letting agent; Jones Lang LaSalle advised the vendor. King Edward VI School Foundation is the freeholder.

A number of other central Birmingham office locations are also on the verge of being sold, market rumours suggest.

On Friday it was suggested as much as £270m worth of property assets were up for grabs in the city and it was strongly rumoured that Victoria Square House – home to tenants such as law firms DLA Piper and Browne Jacobson – was under offer.