Birmingham landmark on sale in cut-price deal as value slashed in half
A landmark office building in Birmingham city centre has been put up for sale for half what it was bought for in 2019.
The Lewis Building and its adjoining neighbour Priory Court in Bull Street were acquired by Gulf Islamic Investments for £140m.
The investor, which has offices in Dubai and Abu Dhabi, bought the building from the property arm of Legal & General.
However, the property has now been put back on the market, with CBRE overseeing the proposed sale. Offers in excess of £73m are being considered.
The Ministry of Justice is a major tenant at the building which is located near where Birmingham’s HS2 station will be.
Other tenants include JD Wetherspoon, BGF, Freightlinger 6 and Regus.
The Lewis Building and Priory Court had previously been owned by LGIM Real Assets after it bought Priory Court and Temple Court, as it was then known, for 87.5m in 2014.
Temple Court was then refurbished and relaunched in 2017 as The Lewis Building.
The rebrand was in recognition of the building’s original use as a Lewis’s Department store when it opened there in the 1920s but closed in 1991 after the company fell into administration.
Writing on LinkedIn Nick Wood, executive director, capital markets, at CBRE, said: “CBRE is excited to present Priory Court and The Lewis Building; a rare opportunity to acquire a high-quality office asset anchored by long-term government income.
“Strategically located in the heart of Birmingham’s CBD, this landmark investment offers an attractive combination of government income and asset management opportunities to drive value.”
The Lewis Building and Priory Court have a total floor area of 254,190 sq ft and has 14 tenants, generating rental income of more than £7m.
Last month, City PM reported that professional services giant EY is to relocate 1,200 employees in Birmingham to a new office.
The move, scheduled for 2026, will see staff switch from One Colmore Square to Three Chamberlain Square, which is part of the Paradise Birmingham development.
EY has been based at its office at One Colmore Square for the last 20 years.
The firm’s new office will be located on the top three floors of the 10-storey building, occupying 70,000 sq ft.