US-based alternative asset management firm Blue Owl Capital has acquired the Birmingham HQ of Mitchells & Butlers (M&B) from Sterling Property Ventures for £55m.
M&B has a circa 20-year lease on 95,000 sq ft of purpose-built office space at 27 Fleet Street and 65 Lionel Street, which was built in 2003.
The building also features a 120-bed, 54,000 sq ft Ibis hotel, operated by Accor Group on behalf of M&B, and 325 underground car parking spaces.
Marc Zahr, global head of real assets at Blue Owl, said: “This acquisition reflects our continued conviction in long-duration, mission-critical real estate assets backed by high quality tenants. The Mitchells & Butlers HQ is a prime example of the type of resilient, income-generating property that aligns with our real assets strategy. As we expand our presence in the UK and Europe, we’re excited to add this high quality, mixed-use asset to our growing portfolio.”
James Howarth, managing director of Sterling, added: “The M&B HQ is a prime mixed-use asset let to a FTSE 250 business on a 20-year lease with five yearly index-linked uplifts. During our ownership, we proactively worked alongside M&B on various environmental strategies to improve the performance of their premises, including the installation of solar PV panels on the roof, adding value to the asset as a result.”
BSB Real Estate advised Sterling on the deal. Dentons and Knight Frank acted for Blue Owl.
