Birmingham has seen its first Chinese property investment with the £7 million purchase of a landmark city centre office block.

Peng Global Holdings and a private Chinese investment partner have bought the leasehold of the 133,000 sq ft Quayside Tower on Broad Street from CBRE Global Investors for a net initial yield of 20.8 per cent, according to Estates Gazette.

Quayside Tower, which was built in 1966 and refurbished in 2003, comprises 97,000 sq ft of offices and 36,000 sq ft of shops.

It also has a multi-storey car park with 230 spaces.

Peng has invested in housing in the London, but its latest move underlines increasing interest from overseas investors in the regions due to rising prices and fierce competition in the capital.

Director Cherry Peng said: “Birmingham benefits from many of the same factors that makes London so attractive, but the market is still relatively untapped by overseas investors.

“We feel there are more good investment opportunities to be had in the city, offering growth in both yield and capital values in the short and long terms.”

Peng said it expected to make further purchases in Birmingham.

Quayside Current tenants include HIBU (UK), Regus, Signalling Solutions and Broad Street Partnerships.

Colliers International advised Peng on the purchase and has been retained as letting agent; Jones Lang LaSalle advised the vendor. King Edward VI School Foundation is the freeholder.