Brockton Capital has made the first investment for Brockton Capital Fund II, a £500 million (€570 million; $815 million) UK opportunity fund that was raised in September 2010.
The London-based firm has acquired The Mailbox in Birmingham for £127.1 million, with co-investment coming from private retail developer Milligan.
The Mailbox is reputed to be the UK’s largest mixed-used building totalling over 1 million square feet and was opened 10 years ago.
The deal comprises 640,000 square feet of lettable accommodation including office, retail, and restaurant units, plus a public car park and a strategic site of 4.8 acres in Birmingham’s city centre. One of the office tenants is the BBC.
Brockton and Milligan said they were looking to build on seller Birmingham Mailbox Limited’s work and had earmarked funds to enhance the building further as well as improve public spaces.
It is thought lending banks had pressured the developer to sell the asset.
Brockton raised £150 million for its first fund, Brockton Capital Fund, in 2006, and invested it in offices, residential, serviced apartments, pubs and the healthcare sector.