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Moorfield announces £30m sale and leaseback deal with Mitchells & Butlers

Opportunity fund manager acquires 95,000 sq ft office and 120-room hotel on behalf of the Moorfield Real Estate Fund II

Moorfield Group (Moorfield) today announced the acquisition of a 95,000 sq ft office and adjoining 120-room hotel in a £30m sale and leaseback deal with Mitchells & Butlers.

The investment was made by Moorfield on behalf of the Moorfield Real Estate Fund II (MREF II), a geared fund which raised approximately £400m of private equity on closing at the end of 2007.

Located on Fleet Street in Birmingham, the bespoke office building was developed by Mitchells & Butlers to act as the company’s Headquarters in 2003.  The development also incorporates a 120-room hotel which adjoins the Headquarters building and is managed by the leisure operator under the Express by Holiday Inn brand.  As part of the deal, both buildings have been leased back to Mitchells & Butlers.

Like its predecessor, Moorfield Real Estate Fund (MREF), MREF II is backed principally by blue-chip US endowment and foundation funds and European pension funds, the majority of which are repeat investors.  The equity of the first fund is now fully committed, having invested circa £1bn in a diverse range of UK assets.

Speaking about the transaction, Marc Gilbard, Chief executive of Moorfield Group commented: “We are delighted to have reached agreement on this acquisition. High quality buildings in a strong location, let to a sound covenant make this a compelling investment opportunity for us and we look forward to building a long term relationship with Mitchells & Butlers over the years to come.”

Colliers CRE acted for Mitchells & Butlers and Savills acted for Moorfield.


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