Blue Owl, a US asset management firm, has purchased Mitchells & Butlers' Birmingham headquarters in a £55m deal, expanding its UK and European portfolio.

The Birmingham headquarters of pubco giant Mitchells & Butlers - which features almost 100,000 sq ft of purpose-built office space and a 120-bed hotel - has been acquired by a US asset management firm in a deal worth £55m, Insider Media reports.

Funds managed by Blue Owl Capital (Blue Owl) has acquired the property, at 27 Fleet Street and 65 Lionel Street, from Sterling Property Ventures.

M&B, one of the largest operators of restaurants, pubs and bars in the UK, has a circa 20-year lease on 95,000 sq ft of purpose-built office space at the asset, which was built in 2003. The building also features a 120-bed/54,000 sq ft Ibis hotel, operated by Accor Group on behalf of M&B, and 325 underground car parking spaces.

The site was first acquired by Sterling’s asset management and investment business, launched in 2024.

James Howarth, managing director of Sterling, said: "The M&B HQ is a prime mixed-use asset let to a FTSE 250 business on a 20-year lease with five yearly index-linked uplifts.

"During our ownership, we proactively worked alongside M&B on various environmental strategies to improve the performance of their premises, including the installation of solar PV panels on the roof, adding value to the asset as a result."

Blue Owl, which is headquartered in New York, has more than $273bn of global assets under management, including more than $67bn within the firm's Real Assets platform.

Marc Zahr, global head of Real Assets at Blue Owl, said: "This acquisition reflects our continued conviction in long-duration, mission-critical real estate assets backed by high-quality tenants.

"The Mitchells & Butlers HQ is a prime example of the type of resilient, income-generating property that aligns with our Real Assets strategy.

"As we expand our presence in the UK and Europe, we're excited to add this high-quality, mixed-use asset to our growing portfolio."

BSB Real Estate advised Sterling on the deal. Dentons and Knight Frank acted for Blue Owl as legal and transaction advisors respectively.