A run-down office building opposite the Paradise regeneration site is to be transformed into luxury apartments after a sale was agreed.
Birmingham Properties Group (BPG) has acquired Galbraith House in Great Charles Street for an undisclosed fee and plans to redevelop it into 19 apartments, including a luxury 2,500 sq ft penthouse.
Galbraith House is part of the seven-building Great Charles Estate, which has fallen into a poor state of repair, blamed on the so-called "concrete collar" blocking transit from the city centre to the Jewellery Quarter.
The portfolio of buildings were bought by AG Dunedin just over a year ago.
Building work at the seven storey Galbraith House, at the corner of Great Charles Street and Newhall Street, will commence in the coming weeks.
BPG will retain the ground floor retail space within its plans, currently home to a Philpotts sandwich shop and Minuteman Press.
Managing director John Tebbutt said: "Galbraith House presents a fantastic opportunity for us to breathe new life into what is set to become one of the most sought after areas of the city as plans for the ongoing redevelopment of this estate and of the adjoining Paradise Circus develop apace.
"There is an insatiable appetite for quality, city centre residential schemes and the accessibility Galbraith House provides to Birmingham's world-class business and entertainment facilities will make this a highly attractive proposition for owner occupiers and investors alike.
"The buoyancy of the Birmingham market in the prime city centre area shows no signs of abating and we anticipate high levels of interest in the new scheme when it comes onto the market shortly."
Dunedin bought the Great Charles Street portfolio for £23 million from Aviva and has already revealed plans for 80,000 sq ft of new office space at Civic House. Work could begin there as soon as this autumn.
The other buildings that form the estate are 154/155 Great Charles Street, Charles House, Lombard House, Beaufort House and Lionel House.
Great Charles Street is expected to be transformed in the coming years.
The Snow Hill Masterplan, a £600 million vision to create "Birmingham's Canary Wharf", envisaged pedestrianising the street to open the city core out to the Jewellery Quarter.
BPG has appointed Knight Frank to market the apartments, which are expected to be ready for occupation in September.
Centrick will act as managing agency and architecture practice Broadway Malyan carried out design work on the project. The Wilkes Partnership acted for BPG on the purchase.