66-69 New Street, Birmingham_Property for Sale
66-69 New Street, Birmingham_Property for Sale
66-69 New Street, Birmingham, West Midlands, B2 4DU, UK

66-69 New Street, Birmingham

Asset Description

66-69 New Street offers a rare opportunity to acquire 4 highly prominent high street retail & leisure units and 24 residential apartments, with attractive asset management potential.


Retail & Leisure


4 retail & leisure units arranged over basement, ground and part first floor.


Residential - New Street Chambers


24 residential apartments delivered between 2018-2020 arranged over first to fifth floors with a dedicated secure New Street entrance.

...

Attributes

Asking price
MYR 36,003,000
Building area net
2,520 m²
Occupancy
100%
Year built
1900

Media

Investment Highlights

  • Highly strategic position in Birmingham City Centre, fronting prime retail & leisure pitch of New Street
  • New Street is a key city centre artery, and one of the highest footfall locations in Birmingham with Victoria Square, New Street Station and Paradise in immediate proximity
  • 66-69 New Street extends to approximately 2,520 sq m (27,122 sq ft) arranged over basement, ground floor and five upper floors.
  • 40% of the floor area is retail & leisure with 60% being residential
  • Freehold
  • The 4 retail & leisure units are let to the established food & beverage operators of Wildwood, Yakinori, GDK and Medicine Bakery
  • The residential provides 24 apartments (one & two bedroom), delivered in 2018 and let via standard AST arrangements
  • Current net rental income of £458,930 per annum, with an attractive average weighted unexpired term of over 10 years to expiry and 9 years to break
  • 3 of the retail & leisure units have been recently let or regeared providing a rebased retail rental level
  • Very low average residential unit rent of £815 pcm, set against prime Birmingham rents of between £1,250 - £1,500 pcm - providing a strong platform for rental growth
  • Immediate asset management options to significantly increase net income from residential element, which currently operates at a gross/net income efficiency of less than 50%, well below market norms
  • Exceptional value creation opportunity, with ability to consider a break up and sale of residential element either via vacant possession sales, or to a single investor, crystalising pricing in excess of £300 cv psf for residential element


We are instructed to seek offers in excess of £6,000,000 subject to contract and exclusive of VAT.


Assuming standard purchaser’s costs on all income elements, a purchase at this level reflects the following highly attractive yield and capital value profile;


Retail Net Initial Yield 9.00% 

Residential Gross Yield 9.40% 

Residential Net Yield 4.36% (less than 50% gross/net efficiency) 

Combined Overall Net Yield 7.17% 

Residential Capital Value PSF £150 (break up value in excess of £300 psf) 

Overall Capital Value PSF £221


66-69 New Street, Birmingham 4_Property for Sale
66-69 New Street, Birmingham 4_Property for Sale

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66-69 New Street, Birmingham (0 Properties)

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Last updated
23 Feb 2024