By Guy Montague-Jones2018-12-06T05:04:00
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.
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