West Register finds buyer for Brum block
Bruntwood is the frontrunner to buy West Register’s major development opportunity at 2 Cornwall Street in Birmingham.
The Manchester-based property firm is in pole position to acquire the 90,000 sq ft office block, which has outline consent for a major 190,000 sq ft office development on site. Bruntwood is believed to be paying more than £10m – topping the £9m guide price.
The deal is due to be signed within the next week .
Bruntwood is the frontrunner to buy West Register’s major development opportunity at 2 Cornwall Street in Birmingham.
The Manchester-based property firm is in pole position to acquire the 90,000 sq ft office block, which has outline consent for a major 190,000 sq ft office development on site. Bruntwood is believed to be paying more than £10m – topping the £9m guide price.
The deal is due to be signed within the next week .
Bruntwood is most likely to refurbish the existing 90,000 sq ft existing office block in line with its existing company strategy of transforming outdated buildings, rather than demolishing the building to carry out a comprehensive redevelopment.
Circa seven bids were received from parties for either refurbishment or redevelopment. Those interested included Bannertown, Brockton with Landid and Sterling Property Ventures with AXA.
GVA and CBRE are advising West Register on the sale.
All parties declined to comment.
Meanwhile, Legal & General Property has pulled out of buying the iconic former Natwest Tower from British Land, which sits at 103 Colmore Row in Birmingham.
L&G had teamed up with James Howarth’s Sterling Property Ventures in July to buy the 78,000 sq ft 1960s-built tower as a development opportunity – Bruntwood was one of the underbidders for the scheme.
BL has consent to demolish the vacant building and build a 35-storey, 284,000 sq ft tower on the site. The consent expires in June 2015. Sources said that L&G backed out of the deal due to an “investment strategy change at macro level” within the fund that was going to make the purchase. Sterling Ventures is still under offer on the building for circa £15m. Sterling’s plans are funded and the deal is due to sign imminently.
Knight Frank advised L&G and Sterling.
• Birmingham city council has received 18 bids for the sale of its 75,000 sq ft Louisa Ryland House on Newhall Street. Buyers are clamouring for the vacant, grade II listed office block as it is an important speculative development opportunity. It is expected to sell for between £5m and £10m.
lisa.pilkington@estatesgazette.com
