M&G has instructed JLL to sell Two Snowhill, an office tower in Birmingham, for over £101.7m.
The investment features net initial yield of 9%.
The 310,000 sq ft building arranged over 14 storeys sits in Birmingham’s Colmore business district.
It is leased in the main to law firm Gowling WLG and HS2 Ltd, with an WAULT of 7.8 years to expiry and four years to break.
Other occupiers in the building include Carter Jonas, Old Mutual and Towry Law.
According to Radius data, average rents in the building stand just over £30 per sq ft, offering a close to 30% discount to current prime levels.
M&G Life Fund bought the development back in 2014 for £140m.
Two Snowhill forms part of a cluster of new developments, situated opposite the Snowhill rail station, with 263,000 sq ft One Snowhill and 420,000 sq ft Three Snowhill adjacent.
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Image © JLL
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