M&G Investments reported to be in talks to buy Two Snowhill
INVESTMENT firm M&G is in talks to buy the Two Snowhill building in Birmingham, reports suggest.
The news comes just a day after it was revealed that HS2 Ltd – the company behind the planned high-speed rail line – has taken 100,000 sq ft of office space in the building for its new headquarters.
According to CoStar, M&G Investments is in talks to buy Two Snowhill and the building is expected to fetch in excess of £155m.
The HS2 deal is one of Birmingham’s biggest office lettings in years and it makes Two Snowhill more attractive as an investment proposition because the 314,000 sq ft building is now effectively full with blue-chip clients signed up on long-term deals for rents around £30 per square foot.
Law firm Wragge Lawrence Graham & Co pre-let 185,000 sq ft on a 20-year lease starting March 2013 – although it is looking to sub-let up to 50,000 sq ft of that space – and serviced office group i2 Office let 23,500 sq ft at the building at the end of last year.
Hines Interests Limited Partnership, on behalf of Hines European Development Fund II, bought the freehold interest in Two Snowhill from Ballymore Properties in 2011. Hines and Ballymore have jointly developed the site.
According to CoStar’s sources, Hines has entered into off market negotiations to sell Two Snowhill to M&G, although there has been no confirmation from either party.
CBRE and GBR Phoenix Beard are letting agents for Two Snowhill. GM Real Estate advised HS2 on its 100,000 sq ft letting.