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£100m deal for 55 Colmore Row

One of Birmingham's premier office buildings has been bought in a deal worth almost £100 million.

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55 Colmore Row has been sold for just under £100m

Property investment group TH Real Estate has acquired 55 Colmore Row from IM Properties, on behalf of its European Cities Fund, for around £98m.

It comes less than a year after a major revamp of the building was completed.

Totalling 157,562 sq ft across seven floors, the property includes leisure accommodation on the lower ground floor, 64 car parking spaces and 57 cycle spaces.

Under previous owners IM Properties, the Grade II listed Victorian former banking hall, overlooking St Philip's Cathedral, underwent a £30 million redevelopment by Morgan Sindall that was completed last year.

Regarded as one of the best office buildings in Birmingham, Colmore Row is now let to several high-profile tenants, including Pinsent Masons, Savills, the Royal Institution of Chartered Surveyors (RICS) and Gaucho.

Andrew Rich, fund manager for the European Cities Fund at TH Real Estate, said: "Birmingham has benefitted from substantial regeneration and inward investment of roughly £1bn in recent years, raising the city’s business profile and attracting global companies.

"Given the attractiveness of the building, the low vacancy rates for Grade-A office stock and limited supply within the city, we believe this asset should deliver excellent returns for the fund."

John Hammond, investment director at IM Properties, said: "55 Colmore Row is about as prime as you get in Birmingham, in the heart of the business district and right at the centre of a mayor renaissance with Colmore Row attracting many high end operators to the area.

"The redevelopment of the building was a real labour of love and we poured much of the company's heart and soul into it, often going above and beyond what most developers would do. Our ambition was always to create a best in class asset and that's exactly what we achieved.

"The acquisition is obviously a great way to start 2018 for IM Properties but also Birmingham, as it really sets the tone for the city going forward into the new year, demonstrating its tremendous growth potential now and in the future.”

Abigail Dean, head of sustainability at TH Real Estate, added: "Sustainability is core to the European Cities Fund strategy because investing in future-proof buildings, in resilient locations can help protect future returns. The acquisition of this BREEAM (Building Research Establishment Environmental Assessment Method) 'Excellent', energy efficient building further boosts the sustainability profile of the fund and will also contribute towards the achievement of TH Real Estate’s target to reduce energy intensity by 30 per cent by 2030."