In 2015, it was found that half of the Birmingham city centre office deals were through overseas investors, spending £335m in total.
Two of the biggest deals of the year were the £131m acquisition of RBS’s Brindleyplace headquarters and the £36.7m purchase of Deutsche Bank’s home at One Brindleyplace. Both of which were executed by German funds.
Investment from UK institutions attributed £218m to Birmingham city centre, which equated to one-third of the city’s total, with £108m coming from investment vehicles for ultra high net worth individuals (UHNWIs), Knight Frank analysis found.
UHNWIs account for around 16% of Birmingham city centre office investment. In August last year, Colmore Plaza was sold to an investment fund through private investors for £140m.
Ashley Hudson, Knight Frank’s investment partner for the Birmingham office, said that private investors have become a permanent part of the commercial property investment scene in the city.
He added: “As an asset class, property has become increasingly attractive to individuals with deep pockets. It is a tangible asset, with an underlying value as well as providing income. It offers reduced volatility relative to assets subject to daily market pricing and protection from inflation.
“In Birmingham, office lots of sub-£30m are the most attractive to private buyers.”