The new owners of a landmark office building have promised “substantial improvements” after becoming the first of an expected rising tide of Chinese investors.
Peng Global Holdings plans to refurbish the 17-storey Quayside Tower in Broad Street after taking it over in a joint venture with a private investor from China.
The move represents Peng’s first investment outside London, and the first office in its portfolio, and comes as agents throughout the city record a rising tide of interest from the Far East.
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Until now, Peng Global Holdings has focused on the London residential markets but Cherry Peng, of Peng Global Holdings, said it had targeted Birmingham.
The firm is planning a refurbishment starting with a new foyer.
She said: “Birmingham benefits from many of the same factors that makes London so attractive but the market is still relatively untapped by overseas investors.
“We feel there are more good investment opportunities to be had in the city, offering growth in both yield and capital values in the short and long terms. Peng Global Holdings may be the first Chinese company to invest in Birmingham, but expect more to follow.”
Quayside Tower was built in 1966 but has been recently refurbished, including complete re-cladding 10 years ago. Current occupiers include HIBU (海角视频), Regus, Signalling Solutions and Broad Street Partnerships.
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The reception area is set to be remodelled and refurbished while improvements are also planned to the building’s entrance. New facilities for cyclists will also be provided to encourage sustainable travel.
Ms Peng added: “We have been considering suitable investments in regional cities and Birmingham seems the natural choice for us. I had a positive feeling about the building as soon as I entered and, as new owners we look forward to incorporating our heritage in the design of a bright new foyer.”
Meanwhile, Irish investment firm Ardstone is set to spend about £40 million to take over Victoria Square House, in Victoria Square, from F&C Reit Asset Management. Ardstone is believed to have beaten a host of investors to the 160,000 sq ft property including Deutsche Bank and Legal & General.
Law firm DLA Piper is the major tenant, occupying 54,000 sq ft. The property was reportedly close to being sold to Nurton Developments and Moorfield Group in 2010.