Property investment market heats up as Alpha Tower is sold
IN A further sign of the increasing appeal of Birmingham’s central office to investors, the landmark Alpha Tower office building has been bought by London-based Anglo-Scandinavian Estates (ASE) for an undisclosed sum.
The 196,105 sq ft building, situated on the corner of Suffolk Street Queensway and Broad Street in Birmingham city centre, will now undergo a comprehensive refurbishment.
ASE has earmarked an additional £9m to fund the refurbishment of Alpha Tower to a Grade A standard.
One of Birmingham’s best known and widely recognised office buildings, the 328 ft high Alpha Tower features column free floorplates of 7,000 sq ft across each of its 27 upper floors.
Arena Central Developments sold the building to Catalyst’s European Property Fund in 2008 for £42m. Nationwide Building Society put the building into receivership in 2012 and put it on the market for £10.25m in 2013.
Investor ASE was advised by Commercial Estates Group (CEG), which already manages a number of commercial buildings in the city including Tricorn House at Five Ways and 36 Great Charles Street.
CEG’s Tom Gaynor said: “Alpha Tower is the most prominent office building in Birmingham city centre with its position and elevation making it a true landmark visible from across the city.
“This investment is categorically focused on the future and it is our intention to reposition this building to appeal to the most active sector of the Birmingham office market.
“Our proposals extend far beyond simply tidying up and adding a fresh coat of paint. Our objective is to give new life to Alpha Tower, creating an environment that will attract image conscious occupiers seeking cost effective space.”
GBR Phoenix Beard and CBRE are joint letting agents on the building.
GBR Phoenix Beard’s Ben Thacker said: “The purchase of Alpha Tower is indicative of deals that are being completed in the wider market and of the returning confidence that we’ve seen in Birmingham specifically.
“As the office market continues to improve, it is likely that we will see a number of city centre occupiers who have benefitted from the buyers’ market of the last six years finding themselves priced out of the core.
“We are already aware of prospective occupiers who are starting to experience this first hand and expect the situation to escalate.
“Alpha Tower will provide a solution to this problem, combining affordable, Grade A quality offices with a location at the very centre of Birmingham’s ongoing redevelopment.”
