The property arm of finance group Legal & General has made another acquisition in Birmingham city centre.
The company has bought 43 Temple Row from the Crown Estate for £14.5 million on behalf of its managed property fund.
43 Temple Row is a 36,000 sq ft mixed-use office and retail block on the corner with Cherry Street and whose tenants include Regus and Lloyds Bank.
Overlooking St Philip's Square, the building adjoins House of Fraser which was acquired by Legal & General's property fund at the end of last year.
The firm also completed a deal for Fradley Park, in Lichfield, and city centre buildings Temple Court and Priory Court in 2014 and the headquarters of listed pub group Mitchells & Butlers and 1 Colmore Square earlier this summer.
Senior fund manager Mark Russell said: "The acquisition of 43 Temple Row supports our current fund strategy to increase our exposure to business space assets with strong property fundamentals.
"We are optimistic about rental growth prospects for the right space in the major regional centres and particularly so where significant infrastructure investment is to be delivered.
"St Philip's Square is considered a prime location within Birmingham's central core and benefits from close proximity to good transport links.
"In addition, we expect it to gain from improvements that we are looking to deliver to the wider block, working closely with House of Fraser."
Hannah Milne, head of regional portfolio at The Crown Estate, added: "Sales of non-core assets into strong markets have been key to driving our commercial performance over recent years, helping to provide new sources of capital for investment across our four core sectors.
"Outside of London, where our focus is on dominant regional retail and leisure schemes, we're looking at how we can raise the quality of the assets we manage even further through refurbishments or new developments."
Property consultancies Griffiths Eccles, for The Crown Estate, and Knight Frank, for Legal & General, acted on the deal.