Two Snowhill sold to M&G Real Estate

THE long-mooted acquisition of the 314,000 sq ft Two Snowhill office building in central Birmingham by M&G Real Estate has come to fruition.

TheBusinessDesk.com reported back in July that M&G was in talks to buy the building soon after it was revealed that HS2 Ltd – the company behind the planned high-speed rail line – had taken 100,000 sq ft of office space there for its new headquarters.

Now it has been confirmed that M&G Real Estate has acquired the building from fund manager Hines.

Financial details have not been disclosed but in July it was suggested the building would fetch in excess of £155m.

HS2 is to base around 1,500 staff in the 14-storey building.

The HS2 deal is one of Birmingham’s biggest office lettings in years and it made Two Snowhill more attractive as an investment proposition as 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 jointly developed the site.

Colliers International advised M&G on the deal.