Former Birmingham department store and retail arcade handed £73m price tag
A former department store in Birmingham which has been converted into offices along with a retail arcade have been placed on the market with a £73m price tag.
CBRE has been instructed to Priory Court and The Lewis Building on Bull Street – which comprise over 250,000 sq ft of office, retail, and leisure space – on behalf of receivers.
The sale also includes The Minories, a nine-unit retail arcade totalling 5,842 sq ft.
The Lewis Building was one home to the Lewis’s department store before closing in 1991. It was acquired in 2014 by LGIM Real Assets, which carried out a refurbishment and relaunched it in 2017.
Today the property contains 111,620 sq ft of Grade A office accommodation, let to four tenants, whilst Priory Court comprises 136,728 sq ft of offices with ground floor space let to pub operator JD Wetherspoon.
Nick Woodward, head of investment properties at CBRE Birmingham, said: “Priory Court and The Lewis Building is a unique opportunity to acquire a high-quality office asset, anchored by long term government income whilst also presenting significant asset management opportunities to add value.
“With a take-up of 842,200 sq ft across 96 deals in 2024, the Birmingham office market has recorded its highest level of take-up since 2017 and significantly above the five, ten and 15-year averages.
“Alongside this, Birmingham has witnessed impressive rental growth over recent years and with a limited development pipeline this trend is expected to continue. These market dynamics offer an exceptional opportunity to execute a successful asset management strategy at Priory Court and The Lewis Building, through new lettings, re-gears and strategic capital expenditure.”