Patron Capital Partners and its UK investment partner Princeton Investments are spending £2.5 million on a revamp after buying the mixed-use City Plaza in Temple Row, Birmingham.
The 96,000 sq ft office and retail centre was acquired from CGIS and its joint venture partner, HBOS, for just under £26 million.
Tucked away in one corner of St Philip's Square, the building will undergo an extensive refurbishment costing a further £2.5 million. According to Patron MD Keith Breslaur, the work will be finished by early 2007.
"This long-term investment represents a logical addition to our other investments with Princeton," he says.
"This now comprises eight buildings throughout the UK regions, with three in Birmingham, consolidating our position in the country's second city."
Alan Lee, of Princeton, says: "This investment reflects our continued strategy to add to and enhance our presence in the regions.
"Our confidence in the Birmingham office and retail markets is based on the strong letting potential for prime, centrally located space."
Adrian McStay, chairman of commercial property agent GSD, which advised the partners, says: "Princeton's plans for City Plaza will provide the city with some of its highest quality grade A space in an unparalleled central location."
Bank finance for the transaction was provided by HBOS. The vendors were legally represented by Clyde & Co and the purchasers by Taylor Wessing.