Legal & General Property has bought the freehold interest of the Birmingham headquarters of bar and restaurant operator Mitchells & Butlers and an associated hotel.
The properties were acquired from LaSalle Investment Management for £69.5m ($180m).
Legal & General Property bought the building on behalf of its limited price inflation income property fund.
The grade A office building was purpose-built for M&B in 2003 and is let in its entirety to M&B for 35 years from January 2009, with RPI-linked rental increases.
The deal also includes the 120-bedroom Ibis Styles Hotel which was rebranded and refurbished in 2014.
Derek Gilby, senior fund manager for Legal & General Property, said the purchase was the first major regional city centre office asset for the fund. "We believe that Birmingham is set to benefit from a number of significant infrastructure projects already under way and the asset is well positioned to gain from the regeneration of the adjacent Paradise area."
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