Q-Park, The Mailbox, Birmingham_Property for Sale

Royal Mail Street, Birmingham, West Midlands, B1 1RD, UK

Q-Park, The Mailbox, Birmingham

Asset description

The property offers a rare opportunity to acquire Birmingham's premier long let car park investment operated by Europe's leading car park provider. Q-Park at the Mailbox is situated in a highly prominent position on the Western side of Birmingham's Central Business District, a 5 minute walk from New Street Station and benefiting from excellent road access being immediately beside the A38 with highly visible signage leading from all major routes.

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Investment highlights

• Best in class award winning car park situated in a market leading trading position in Birmingham City Centre

• Birmingham is the UK’s second city and at the heart of the UK’s infrastructure platform

• Forming part of the highly successful Mailbox scheme, a landmark mixed use asset, providing office, hotel, residential, leisure & cinema, retail & department store and car parking uses

• Strategically situated overlooking and immediately accessed from the A38 dual carriageway, and being a 5 minute walk from Birmingham New Street Station

• 687 car parking spaces occupying 217,871 sq ft and arranged over lower ground, ground and first floor levels

• The superior landlord has the right to use up to 197 of these spaces, retaining the income generated. When these spaces are not utilised Q-Park are able to expand their capacity accordingly

• Long let to Q-Park Ltd guaranteed by Q-Park B.V. with 28.85 years unexpired without break

• Current total rent of £2,072,690 p.a., reflecting £3,017 per space

• Annual RPI linked rent reviews, with a cap & collar of 2% - 4% p.a. – guaranteeing future annual rental performance

• New 250 year long leasehold interest at a peppercorn rent, mirroring the Q-Park occupational demise over part lower ground, ground and first floor levels, with superior landlord redevelopment option in 2130 at market value

• Q-Park Mailbox is considered the premier car parking operation in Birmingham city centre, benefitting from a number of critical advantages over surrounding car park competition, underwriting strong user demand and Q-Park’s occupational resilience

Proposal

Offers are sought in excess of £25,250,000 (Twenty Five Million Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level reflects an attractive net initial yield of 7.69%, assuming standard purchaser’s costs, a low capital value of £115 psf, a minimum equivalent yield of 9.01% and a 10-year ungeared IRR of 10.26%.