The Custard Factory has been sold to a partnership of three young real estate developers.

Former owner Lucan Gray has sold his share in the family firm to Oval Real Estate, a privately owned investment and asset management company in London.

The deal includes nearby Fazeley Studios and warehouses in Heath Mill Lane in Digbeth .

Benny Gray, Lucan’s father, is retaining ownership of the Zellig and Lucan is holding onto The Big Peg in the Jewellery Quarter.

Custard Factory

“We have bought Lucan Gray’s holdings in Digbeth,” said Nick Prior, co-founder of Oval Real Estate.

“That includes the Custard Factory, Fazeley Studios and the warehouses in Heath Mill Lane.

“We’re very excited by it and are committed to the long term regeneration of Digbeth.

“We’re unable to talk about what is going to happen there just yet other than to say we’ll be following on from the good work that Lucan has done.

“It’s all very fresh and we’re still working everything out. We still need to talk to staff and tenants.”

Custard Factory

What is Oval Real Estate?

Oval Real Estate was formed in 2013 by chartered surveyors James Craig and Nick Prior and has gone onto buy and sell more than £600m of UK commercial property.

Oxford University graduate Max Schofield joined the team in 2015.

All three businessmen are around the age of 40.

Before founding Oval Real Estate, James was a partner at Bellhammer Property Group and Anglesea Capital and Nick was a partner at Revcap, where he gained exposure to over £2bn of real estate across the UK and Northern Europe.

What’s the reaction in the Custard Factory?

Rumours of the sale began circulating at the end of last week.

One of the tenants at the Custard Factory, who didn’t wish to be named, said: “I understand it’s three individuals who have got money behind them.

“I’m seeing it as good news. There’s not much retail here. If it’s someone who understands retail, that would be good.

“It’s a good space, it needs a bit more activity there.”

Some tenants knew nothing about the sale, whilst another anonymous tenant said: “Everyone round here is talking about it

“Apparently the new guys have got money to invest. That’s what the Custard Factory needs.”

The sale happened just as the transformation of the Custard Factory Courtyard was completed. The water feature has gone and it is now a wide open space, presumably for events and activities.

The new courtyard at the Custard Factory

A former Custard Factory tenant, who continues to work locally, added: “The rumours are it is a partnership of three young property buyers who have paid a lot of money for it.

“I guess they’ve bought it ahead of HS2 moving in. The area is going to change a lot in the next 10 years. They say it will be good for business. But I think the rents will go up, making it good for big businesses but not so much for small, creative companies.

“Let’s hope the new owners help market the businesses at the Custard Factory to encourage more people to visit them.”

The Birmingham Mail has contacted Lucan Gray to ask for a comment.

• What would you like to see happen at the Custard Factory?