Legal & General has drawn up plans to turn House of Fraser’s giant store in Birmingham into offices and a hotel after seeing the value of the property and its rental income fall sharply, Property Week can reveal.
Under the proposals, which are due to be lodged with Birmingham City Council later this month, the Rackhams building would be completely redeveloped to provide nine floors of offices, a hotel, a rooftop terrace, as well as bars, restaurants, cafés and retail space.
Following the sale of House of Fraser to Sports Direct earlier this year, L&G agreed a temporary lease for the 490,000 sq ft property with the new owners to keep the store trading. As a result of the agreement, House of Fraser is understood to be paying just 20% of the previous rent.
You must be logged in to view premium stories.
Take out a print and online or online only subscription and you will get immediate access to:
To get access to premium content subscribe today
Alternatively REGISTER for a free trial to access up to 4 articles and sign up for email alerts