A prominent city centre building next to the new Grand Central shopping centre has been sold for a reported £40 million.
Exchange Buildings in New Street, whose tenants include McDonald's and HSBC, has been acquired from Aviva Life and Pension UK by Orchard Street Investment Management on behalf of St James's Place Wealth Management.
The sale price was undisclosed by the Post understands the deal was in the region of £40 million which reflects a net yield of 4.5 per cent.
Exchange Buildings comprises four retail units covering 25,853 sq ft and a 140-bedroom Premier Inn hotel.
Julian Cobourne, asset manager at Aviva Investors which acted for the seller, said: "The deal was the culmination of a carefully managed asset management program, undertaken over a number of years.
"Firstly, to pre-let and refurbish the tower element of the property, which was successfully achieved to Premier Inn.
"This followed with a regear of the headlease with The Governors of King Edward Sixth School in Birmingham, increasing the unexpired headlease term from 56 to 200 years."
Tom Chadwick, investment transactions manager at Orchard Street, added: "The Exchange Buildings occupy an excellent position in the heart of Birmingham's retail core, offering both income security, with a weighted average unexpired lease term of 14 years, and access to rental growth following the adjacent redevelopment of Grand Central and the entrance of new occupiers, such as Apple, to the Birmingham market."
Ben Kelly, capital markets director from property consultancy JLL in Birmingham, acted for Aviva Investors and Richard Fletcher-Brewer, of GBR Phoenix Beard, represented Orchard Street.