Four firms – BAM Construct, Galliford Try, Wates and Willmott Dixon – are bidding the landmark building revamp, which includes construction of an extra floor taking it to seven storeys.

Demolition firm Squibb will now start strip out with a main contract award expected within the next few months.

Constructed in the 1920s, originally as the Lewis’s Department store, the property is located in the heart of Birmingham next to Old Square.

The EPR Architects designed project will provide 110,000 sq ft of Grade A flexible office accommodation.

Charlie Walker, Fund manager to the UK Property Income Fund II, said:  “With strong growth in the Birmingham office market and the continued trend for major relocations to the city, the sensitive refurbishment of this landmark building will be an important step in meeting growing occupier demand.”

LGP has been particularly active in the central Birmingham market over the last 18 months.

Recent LGP investments

August 2015: the purchase of 43 Temple Row, Birmingham, on behalf of its Managed Property Fund, from the Crown Estate for £14.5m, completing its ownership of a prime block fronting St Phillips Square.

August 2015: the acquisition of No 1 Colmore Square, a 202,807 sq ft office building in Birmingham City centre, for £87.3m, on behalf of the UK Property Fund.

July 2015: the purchase of Mitchells & Butlers’ HQ offices and associated 120-bedroom Ibis Styles Hotel, also prominently located within Birmingham’s CBD, for £69.5m, on behalf of the LPI (Limited Price Inflation) Income Property Fund.

June 2015: the acquisition of 14-28 Corporation Street, Birmingham from Redevco for around £16m, on behalf of the UK Property Fund.