Real estate investor Blackstone has bought a Birmingham office block in a £182 million deal.
Blackstone says the acquisition is another example of its ‘long-term conviction in the UK and in high-quality sustainable office assets in key European cities.’
James Seppala, head of real estate Europe at Blackstone, said: “We continue to see strong demand for high quality, sustainable office spaces that attract the best talent and employers.
“This investment is a vote of confidence in Birmingham, its thriving commercial heart, and the wider West Midlands. It underlines our commitment to long-term investments that will help build the UK’s economy for the future.”
The Colmore Building is a 314,000 sq ft Grade-A office building in Birmingham’s central business district. It boasts a coffee house, a gym and yoga studio, cycling facilities and a private doctor’s office.
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Peter Ferrari, chief executive of AshbyCapital, said: “I look forward to seeing how our relationship with major investors like Blackstone will strengthen and evolve to continue to serve our businesses, residents, and communities in the months ahead – not least given the government’s Levelling Up agenda.
“Having purchased The Colmore Building in 2015 when it was 40 per cent vacant, this sale marks the successful completion of our asset strategy.
“We acted quickly to carry out an enhancement programme that gave the building Birmingham’s most comprehensive offering of on-site amenities and leased the vacant space at market-leading rents. With the business plan complete, we are now proud to hand over Birmingham’s premier multi-let office building to Blackstone’s expert management.”
Andy Street, the Mayor of the West Midlands, added: “Congratulations to Blackstone on their acquisition of The Colmore Building in Birmingham for £182 million.
“This is yet another vote of confidence in the West Midlands as we bounce back from the pandemic, and completes an investment hat trick for Blackstone with their existing investments in the NEC as well as St Modwen’s regeneration of the former Longbridge factory site.”