... as LGIM eyes £136m plus Lewis Building sale

By Paul Norman - Thursday, October 11, 2018 14:53

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Legal & General Investment Management Real Assets (LGIM RA) is set to bring to market one of Birmingham’s landmark addresses – Priory Court & The Lewis Building – seeking a price of circa £136m and a circa 5.75% net initial yield, CoStar News understands.

Market sources said LGIM RA has instructed CBRE to market the buildings which it bought out of receivership in April 2014 from the Co-operative Bank before undertaking a comprehensive refurbishment, repositioning and reletting of the Lewis Building.

Priory Court is a 137,000 sq ft building let to The Secretary of State on a 30 year lease that expires in 2034 while the 110,000 sq ft Lewis Building, the former home of PricewaterhouseCoopers, is now leased to three tenants on leases with an average 10.4 years to expiry.

In 2015 LGIM RA gained consent for a significant refurbishment and expansion of the Lewis Building, which it renamed from Temple Court in homage to its original start in life as the Lewis Building department store. Yesterday LGIM RA completed a letting of the top floor to the Business Growth Fund, setting a new headline rent for the building of £32 per sq ft.

Both the Lewis Building’s other tenants, the Ministry of Justice (MoJ), which occupies the third floor, and Regus’ Spaces co-working concept which occupies 32,000 sq ft on the ground, first and second floors, committed to occupancy prior to the completion of the refurbishment.

Spaces has let 150 work stations since the completion of its fit-out in July.

The property is strategically located 50 metres from Colmore Row and 500 metres from the future terminus of High Speed 2, which is due to arrive in the city in 2026.

All parties declined to comment.

pnorman@costar.co.uk

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