Birmingham's NEC Group sold 'for £800m'

The ICC is part of the NEC Group

Birmingham's NEC Group has been sold for about £800m, just three years after the city council sold it for £307m.

Investment firm Blackstone announced the acquisition from LDC, Lloyds Banking Group's private equity arm.

Opposition leader councillor Robert Alden has called for a public inquiry into the 2015 sale of "the city's crown jewels".

The council said the latest deal was a decision for the new owner based on its own valuation and future prospects.

The BBC understands that the latest deal for the NEC Group - which includes the National Exhibition Centre, International Convention Centre, Genting Arena and Barclaycard Arena - is about £800m.

Labour MP Khalid Mahmood said the decision to let it leave public ownership in 2015 was wrong.

He told the BBC: "We are the custodians of the city's future generations and we've let them down."

'Develop and flourish'

Councillor Alden, the leader of the Birmingham Conservative Group, said: "While Lloyds Group are clearly entitled to get the best deal for their shareholders, you have to question whether this enormous profit means the city council did not do its job in getting the best deal for Birmingham taxpayers."

The NEC hosts many of the largest exhibitions in the UK, including Crufts, Spring Fair and Grand Designs Live.

A council spokeswoman said: "In 2015, Birmingham City Council made it clear that if the NEC Group was to continue to develop and flourish, this could only be done outside of the council's control because of the limitations that public ownership placed upon the business.

"The developments and investments made by the new owners mean the future owner is acquiring a very different business and a direct comparison between respective valuations is not appropriate.

"The cost of the acquisition is ultimately a matter for the new owner based on their own valuation of the business in its current state and its future prospects."