Landmark city building Alpha Tower is set for a renaissance after being taken over in a £14 million deal.
The 196,000 sq ft tower has been bought by the Anglo Scandinavian Estates Group, which will now invest £9 million in a major refurbishment.
The fee represents a major fall from the £42.5 million which the building, on the corner of Suffolk Street Queensway and Broad Street, changed hands for in 2008, when it was bought by Nationwide.
The deal comes ahead of a major overhaul of the nearby area through the Paradise Circus development.
Alpha was originally developed in 1969 as part of a wider ATV Studios development, and Tom Gaynor, from the Commercial Estates Group (CEG) which advised the deal, said the plan was to restore it to former glories.
He said: “Alpha Tower is the most prominent office building in Birmingham city centre with its position and elevation making it a true landmark visible from across the city.
“This investment is categorically focused on the future and it is our intention to reposition this building to appeal to the most active sector of the Birmingham office market. Our proposals extend far beyond simply tidying up and adding a fresh coat of paint. Our objective is to give new life to Alpha Tower, creating an environment that will attract image conscious occupiers seeking cost effective space.”
Work to refurbish Alpha Tower to Grade A standard is due to commence imminently, which will see the new space delivered in phases from this summer.
The tower remains one of the city’s most recognisable buildings, and offers exceptional views across Birmingham.
It even featured in the Cliff Richard film Take Me High for both exterior and interior shots.
Its location has now been boosted by the new Library of Birmingham, and the Paradise Circus development will bring it closer to the city core. It also sits next to nine-acre Arena Central development, which will deliver new offices and public spaces.
ASE was also advised on the purchase of Alpha Tower by GBR Phoenix Beard, with the vendor advised by CBRE.
Ben Thacker, GBR Phoenix Beard, said: “The purchase of Alpha Tower is indicative of deals that are being completed in the wider market and of the returning confidence that we’ve seen in Birmingham specifically.
“As the office market continues to improve, it is likely that we will see a number of city centre occupiers who have benefited from the buyers market of the last six years finding themselves priced out of the core.
“Alpha Tower will provide a solution to this problem, combining affordable, Grade A quality offices with a location at the very centre of Birmingham’s ongoing redevelopment.”