HSBC Alternative Investments is in advanced talks to buy Brindleyplace in Birmingham in what would be the largest-yet office deal in the city.
The investment arm of HSBC’s private bank is understood to have agreed a deal with Lone Star and Hines to buy five buildings at the office complex for £260m – a yield of 6%.
A deal has been agreed in principle, although it is understood the assets are not formally under offer as HSBC is still in the process of speaking to its clients in its wealth management division about bringing them into a club to make the investment.
Hines and Lone Star, which own a 60:40 share respectively, originally put the opportunity up for sale in September last year for £285m – a 5.5% yield. A sale around the asking price to a Middle Eastern buyer fell through in February and Brindleyplace was formally withdrawn from the market.
The new price reflects a discount of around 5% on the original asking price.
Three, Four, Six and Nine Brindleyplace total 638,400 sq ft, including more than 470,000 sq ft of offices plus ground floor retail and leisure space, an 890-space multi-storey car park, a health club and a prominent café in the square let to Costa Coffee.
Occupiers include Deutsche Bank, RBS and Deloitte, which accounted for 47% of the total rental income when Brindleyplace was first put up for sale.
CBRE and Colliers International are acting for Hines and Lone Star.
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