Martley Capital has completed the purchase of Priory Court and The Lewis Building in Birmingham’s central business district, acquiring roughly 254,000 sq ft of Grade A office and retail accommodation as part of its Regional Office (MCRO) fund series.
Overview of the acquisition
The deal, for an undisclosed sum, delivers a freehold asset that the investor says is supported by long-term government-backed income and a weighted average unexpired lease term (WAULT) in excess of seven years. Martley Capital intends to take a proactive approach to managing The Lewis Building, targeting vacant space lettings, lease regears and selective capital investment to improve the property’s amenities.
“We continue to see value in the UK regional office market. Occupational markets are strengthening, prime rents are growing and the supply of high quality office space is becoming increasingly constrained,”
said Rory Finnan, head of transactions at Martley Capital.
Investor view and market context
Martley’s chief executive, Richard Croft, framed the purchase as a strategic call on regional offices, comparing the opportunity to previous sector cycles in industrial and retail warehouses. He acknowledged prevailing investor scepticism over long-term demand given trends such as home working and developments in AI, but suggested the company sees those factors differently — as evolutions rather than permanent reductions in office usage.
What the deal means locally
For Birmingham the acquisition represents a notable vote of confidence in the city-centre office market. The buildings’ government tenancy reduces short-term vacancy risk and the planned capital works could improve workplace offer at a time when high-quality, well-serviced space is increasingly sought by occupiers.
- Asset size: c. 254,000 sq ft of office and retail space
- Tenure: freehold
- Income profile: long-term government-backed rents; WAULT > 7 years
- Investor plans: leasing, lease regears and targeted capital investment
| Item | Detail |
|---|---|
| Properties acquired | Priory Court and The Lewis Building |
| Approximate area | 254,000 sq ft |
| Price | Undisclosed |
| WAULT | More than 7 years |
The deal underscores a divergence that many market participants are watching closely: while investment pricing has remained cautious, demand from occupiers for high-quality regional space is showing signs of recovery. For occupiers and local stakeholders, that could mean improved options and a push to refurbish existing stock to meet contemporary needs.
Martley Capital’s acquisition will be watched locally for signs of how quickly the firm can reposition space and whether other investors follow its lead in Birmingham’s office market.
