Long-awaited confirmation of the sale of Louisa Ryland House has been announced.
In December, Birmingham-based property developer Graftongate was linked to the sale of the city council building in a deal rumoured to be worth £7 million.
Birmingham private fund Euro Property Investments (EPIL) supported Graftongate in the acquisition of the virtual freehold interest and the plan is to open 90,000 sq ft of grade A offices during next year.
EPIL said it viewed the acquisition as a near-term opportunity to create either a major HQ or three separate buildings.
Peter Wood, head of investment at Harris Lamb which advised Euro Property Investments, said: "The building is particularly significant as Louisa Ryland was a generous benefactor to the city of Birmingham and EPIL, which is the family office of the Majid family, is a major employer.
"The acquisition marks an important effort by the Majid family to positively help in the rejuvenation of the city core."
David Smeeton, director in Colliers International's national investment team which advised Graftongate, added: "Birmingham is the focus of great attention from investors at the moment looking to the UK's regional cities in search for yield.
"The partnership is well timed as it will deliver grade A office accommodation at a time when shrinking supply and falling vacancy rates are impacting on occupier choice.
"A newly refurbished Louisa Ryland House coming to market in 2016 would certainly help to plug this gap."