HSBC eyes Brindleyplace megadeal

15 October 2016 – by David Hatcher

HSBC Alternative Investments is in advanced talks to buy Brindleyplace in Birmingham in what would be the largest office deal in the city.

The investment arm of HSBC’s private bank has agreed to buy five buildings at the complex from Lone Star and Hines Global REIT for £260m – a yield of 6%.

A deal has been agreed in principle, although the assets are not formally under offer because HSBC is still speaking to clients in its wealth management division about bringing them into a club to make the investment.

If completed, the deal would be a major boon to the UK regional markets as overseas investors look to take advantage of the relatively high yields on offer and the devaluation of sterling. For Birmingham it would also be a further boost, with confidence brimming at the prospect of HS2 becoming operational from 2026.

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