Birmingham City Council has acquired 71,807 sq ft of prime office and retail space in the heart of the city’s central business district from UK Commercial Property REIT (UKCM).
The £26,480,000 deal sees the country’s largest local authority and largest landowner of property in Birmingham, welcome 9 Colmore Row into its portfolio. The property comprises 71,807 sq ft of high-quality office and retail accommodation across ten storeys with 64 car parking spaces, on the doorstep of Snow Hill railway station and the Midland Metro stop on Bull Street.
Situated in the heart of the city’s prestigious Colmore Business District (CBD), home to circa 500 companies employing up to 35,000 people, the site forms part of the ‘Area of Transformation’ within the Snow Hill Masterplan.
Building on the principles set out in Birmingham’s Future City Plan, the vision for Snow Hill seeks to maximise investment, development and regeneration opportunities within the district to enhance its quality and offer, leveraging its unrivalled connectivity and continued transformation.
Cllr Ian Ward, Leader of Birmingham City Council, said:
“The Colmore Business District and Snow Hill are vital to the economic success and viability of Birmingham city centre, with hundreds of businesses employing thousands of people.
“As the redevelopment of the area continues to progress in accordance with the Snow Hill Masterplan, with new occupiers including BT, KPMG, HS2 and Barclays, the acquisition of 9 Colmore Row is an investment in Birmingham’s future success, supporting job creation, investment and growth.”
Avison Young acted on behalf of Birmingham City Council on the deal, part of its role as strategic advisors to the authority across its commercial property portfolio.
JLL acted for the owner of the building, UKCM, along with law firm Maples Teesdale LLP, and law firm Brown Jacobson LLP acted for Birmingham City Council.
Damian Lloyd, Investment Specialist and lead for Birmingham City Council property investment at Avison Young, said:
“The opportunity presented by 9 Colmore Row, a high-quality and strategically located asset blending office and retail units in the heart of the city’s prominent central business district, perfectly aligns with Birmingham City Council’s property portfolio strategy, as well as its aspirations to provide an improved experience for people who work in and visit the city centre.
“The area is undergoing significant transformation, from the continued investment into quality public realm to the large-scale regeneration and development in progress, all eyes are on Snow Hill and its potential to reinforce Birmingham as one of the UK’s leading office markets.
“The building’s appeal is evident in the strong occupancy of its current space, and council’s investment will help it to capitalise on this and generate income to invest back into the local community. We look forward to continuing to explore new opportunities for investment in the future.”
Will Fulton, Fund Manager at UKCM, commented:
“The sale of Colmore Row is in line with the Company’s strategy to reposition its office portfolio towards best in class buildings that meet stringent criteria, particularly in relation to ESG and wellness. The timing of the sale enables us to crystallise the value we have recently created through active asset management and we will now look to recycle the proceeds into future fit assets with strong growth potential to help deliver earnings growth for shareholders.”