Property investor and developer Bruntwood, has purchased the former head office of KPMG, for an amount rumoured to be around £10 million.
The acquisition of Two Cornwall Street was mentioned in Bruntwood’s 2014 annual results, which boasts an impressive 56 per cent increase in profits with £19.3 million being made. It is also reported that their net worth has increased by 25 per cent to £358 million during the year.
Previously owned by the Royal Bank of Scotland (RBS), the building originally had planning permission to demolish it and build a 190,000 sq ft office tower, with twelve floors at a cost of £35 million.
In total, throughout Birmingham City Centre, the firm runs three buildings; Centre City in Hill Street, Cornwall Buildings in Newhall Street and the Mclaren Building on Priory Queensway.
Chris Oglesby, the chief executive at Bruntwood, said that the acquisition is a key part of their 2015 strategy, adding: “2014 has been a standout year for Bruntwood. The fact we continued to invest in our portfolio during the economic downturn has positioned us well to fulfil the uptake in demand that we’ve seen across all of our markets as the economy has recovered and the focus has shifted to the major city regions as engines of growth.
“We have always aligned our business with the strategic direction of the economies in which we operate. Political initiatives such as the Northern Powerhouse and further Regional Devolution are good for the future of our cities and therefore good for our business as well”.
Mr Oglesby also said that Bruntwood is going into 2015 with confidence, with the development of 2 million sq ft in locations including; 3 Sovereign Square, Alderly Park, Cornerblock in Manchester and City House in Leeds. On top of that, he said that they are working on 70,000 sq ft for Heart of the Park, and Manchester Business School and is continuing plans for the Manchester Science Partnerships.
Bruntwood has also managed to cut its debt from £590 million to £440 million.
Story: Chris Grigorovsky
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