Sterling Property Ventures has bought pub and restaurant operator Mitchells & Butlers’ Birmingham headquarters for £46m.
The developer behind 103 Colmore Row has bought the property, at 27 Fleet Street and 65 Lionel Street, from Legal & General Investment Management.
The deal marks the first acquisition for Sterling’s new asset management and investment arm. The firm added Adam Crickmore and Neil Ridley to its board last year to develop the offer.
M&B has a circa 20-year lease on 95,000 sq ft of purpose-built office space at the property, which was built in 2003.
The building also includes a 120-bed, 54,000 sq ft Ibis hotel, operated by Accor Group on behalf of M&B, and 325 underground car parking spaces.
The deal is one of the largest office-led investment transactions in Birmingham in the past 12 months.
Sterling’s managing director, James Howarth, said: “We are looking to build a portfolio of properties and have raised capital to support this strategy.
“Being sector-agnostic in our approach and seeking to complement our development expertise, we believe there is real market opportunity to grow a mixed portfolio of assets and use our skills to add significant value in the short to medium term.”
BSB Real Estate advised Sterling Property Ventures, while ACRE Capital Partners acted for LGIM.
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