Brindleyplace owners put buildings on the market
THE Hines and Lone Star joint venture is selling its ownership in the Brindleyplace estate in Birmingham.
Market watchers suggest the sale price is likely to be around £300m.
In an attempt to capitalise on the unprecedented level of investment demand in the city, the duo are selling Three, Four, Five, Six and Nine Brindleyplace, which comprises more than 470,000 sq ft of Grade A offices, plus ground floor retail and leisure space, as well as Brunswick Arcade, an 890 space multi-storey car park, retail parade and health club, and the Cafe in the Square, which is let to Costa Coffee.
High profile office occupiers on the estate include Deutsche Bank, RBS, Bilfinger GVA and Deloitte.
Hines and Lone Star have instructed CBRE and Colliers International to sell the investment on its behalf.
Ed Gamble, executive director at CBRE, said: “The occupational market is buoyant in Birmingham, characterised by a lack of supply, strong tenant demand and increasing inward investment activity, exemplified by HSBC and the confidence it has shown in the city with its 210,000 sq ft pre-let at Arena Central.
“This is combined with record take-up figures for the first half of the year, forecasted rental growth from £30 per sq ft to £35.50 per sq ft over the next three years, and the fact that Birmingham has more capital committed to infrastructure projects than any other European city.
“Brindleyplace is well set to benefit from this going forward.
“For investors it presents an extremely rare opportunity to acquire the majority of one of the UK’s most successful, office-led, mixed-use schemes.”
Hines and Moorfield bought eight buildings at Brindleyplace in 2010 but earlier this year Moorfield sold a real estate investment portfolio – including Brindleyplace – to US firm Lone Star for around £1bn.
