Investment group Legal & General has made another property purchase in Birmingham after it acquired 1 Colmore Square for £87.3 million.
Legal & General Property has bought the city centre office complex on behalf of its UK Property Fund.
The building is home to property consultancy DTZ, financial services firm EY and law firm Shakespeare Martineau and the purchase price reflects a net initial yield of 4.04 per cent.
The property, on the corner of Bull Street and Colmore Row, comprises 202,807 sq ft of grade A office accommodation arranged over ten floors together with two levels of basement car parking providing 133 spaces.
The deal follows swiftly on from Legal & General Property's purchase of Mitchells & Butlers' headquarters and associated Ibis Styles Hotel in the Jewellery Quarter for £69.5 million.
And earlier this year, it acquired the House of Fraser building in Corporation Street and last year bought Fradley Park industrial estate in Lichfield and Priory Court and Temple Court, in Bull Street.
Matt Jarvis, fund manager of the Legal & General UK Property Fund, said: "A well-positioned trophy asset, 1 Colmore Square offers secure income over the medium term coupled with good rental growth expectations due to the strong and diverse occupational market in Birmingham's city centre and the added value opportunities on offer, notably the refurbishment and letting of vacant space within the building."