Two city centre buildings in Birmingham's business district have been sold for £87.5 million.

Legal & General Property has acquired Priory Court and Temple Court, in Bull Street, on behalf of its second UK Property Income Fund (UK PIF II).

The property comprises two linked buildings which total 230,143 sq ft of office accommodation, a retail parade of nine units covering 6,194 sq ft and an 11,000 sq ft pub let to Wetherspoon.

The buildings are let to 13 tenants at a total passing rent of £7.6 million per year and have an overall average weighted unexpired lease term in excess of 11 years.

Priory Court is majority-let to the Birmingham Magistrates' Court until 2034 whilst Temple Court is predominately let to financial services firm PwC until December 2014 even though it is no longer occupying the building.

The property was acquired from receivers appointed by the Co-operative Bank and the price reflects a net initial yield of 8.2 per cent.

Charlie Walker, director of business development and fund manager of the UK PIF I and UK PIF II, said: "As the second acquisition made by UK PIF II, this transaction supports the fund's focused strategy of seeking well-located, larger lot size assets with strong income dynamics.

"These are prominent buildings in Birmingham's central business district and provide the fund with an ideal combination of a strong and secure income return together with scope to deliver added value through compelling near term active management."