M&G Real Estate has acquired Two Snowhill, a 29,650 m2 office and retail scheme in Birmingham’s Colmore business district in an off-market deal with fund manager Hines.

M&G Real Estate has acquired Two Snowhill, a 29,650 m2 office and retail scheme in Birmingham’s Colmore business district in an off-market deal with fund manager Hines.

Financial details were kept confidential but Property Week said the price is thought to be around £140 mln (€174 mln).

The 14-storey, multi-let office building was completed in 2013 and is let to Wragge & Co and i2, with the remaining 9,000 m2 currently under offer.

Hugo Henkes, director of investment management at M&G Real Estate, said: 'This acquisition comes at the right time to benefit from an increasing shortage of Grade A office space in Birmingham and the resulting pressure on prime rents.'

US developer-investor Hines acquired the site in 2011 through its European Development Fund II. It partnered with Ballymore Group to develop the office building which was designed by Sidell Gibson as the 'big sister' to the adjacent One Snowhill office building, which is mainly occupied by KPMG and Barclays.

Debt funding for the Two Snowhill project was provided by Deutsche Hypo's London branch.