An opportunity fund advised by Tristan Capital Partners,, and Addington , the investment and asset management specialist, , has sold a prime leisure investment on Broad Street in Birmingham City centre to Downing Group for £5.4 million. The firms were represented by international real estate advisor Savills and the price reflects a net initial yield of 7.39%.
The asset comprises three units totalling 35,062 sq ft (3,257 sq m) as well as car parking on the upper floor which are let to Bierkeller, Velvet Music Rooms & Sugar Suite and Food Republic for a total passing rent of £425,242 per annum. The properties are located adjacent to a Hampton Hilton hotel and are also within one of Birmingham’s most established leisure destinations, where nearby operators include Grosvenor Casino, Revolution, Five Guys and East Z East.
The properties are owned by EPISO 3, a fund advised by Tristan Capital Partners, the pan-European real estate investment manager and Addington Capital, who acquired them in 2014 as part of Project Tree, a £150 million mixed portfolio which Addington has subsequently been actively asset managing.
Alex Wagstaff, partner at Addington said, “We have been actively asset managing this site in Birmingham, attracting new tenants to our buildings. Last July we announced the letting to The Burning Night Group for their Bierkeller, Shooters Sports Bar and Around the World Bar and Lounge concept, which has helped put Broad Street back on the map as a prime leisure venue.”
Ned Jones, investment director at Savills Birmingham, comments: “This property was selectively marketed and we received strong interest from the outset, highlighting both the improving perception of Broad Street and the growing number of investors looking at alternative sectors. We are pleased with the result achieved on behalf of our client, both in terms of the price and timeframe to complete the sale.”
Downing Group was represented by MK2 Real Estate.
