L&G Plots The Future: Goodbye House Of Fraser, Hello Hotel And Workspace
It is a famously ill wind that doesn't blow somebody some good. The closure of Birmingham's House of Fraser department store will be a blow to shoppers who want to buy saucepans and carpet slippers in one building, but it looks like it's providing a boost to the city's limited supply of refurbished office space.
The refurbishment will see L&G attempt to repeat the success of the nearby Lewis building refurbishment, albeit on a much larger scale.
In October Legal & General Investment Management Real Assets appointed CBRE to advise on the £136M sale of the 110K SF Lewis Building and adjoining 137K SF Priory Court at a net initial yield of 5.75%, CoStar News reported.
LGIM acquired the block in 2014, and subsequently refurbished it. Rents reach £32/SF with tenants including the Ministry of Justice.
The site on the corner of Cherry Street and Temple Row is among the best in the city for both offices and leisure use. The scheme will also include 33K SF of eateries and bars.
House of Fraser currently has a short-term arrangement with Legal & General after entering a company voluntary arrangement earlier this year.