New Street & Temple Street Collection

Birmingham, UK, EMEA

Portfolio description

The New Street and Temple Street Collection is located at the very Heart of Birmingham City Centre in a highly strategic position fronting both New Street and Temple Street within the city’s primary retail & leisure area.

Piccadilly Arcade

Comprises a well-known retail and leisure destination, connecting New Street and Stephenson Street, providing smaller units fronting the arcade, with larger leisure units spanning upper and lower floors being anchored by Clays and Be At One.

White House

Overlooks the prime New Street and Temple Street corner and comprises 4 prime retailing units, anchored by Tim Hortons, with 6 floors of successful offices above (15,323 sq ft). The offices are well occupied and offer rental growth opportunities along with future alternative use optionality.

5-9 Lower Temple Street

Overlooks the busy Temple Street and Stephenson Street corner and comprises 3 prime retailing units, anchored by Archie’s, with 4 floors of successful offices above (7,317 sq ft). The offices offer rental growth opportunities along with future alternative use optionality.

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Attributes

Asking price

$22,611,000

Building area net

60,117 sf

WAULT to expiries

10.4 years

WAULT to breaks

6.4 years

New Street & Temple Street Collection (3 Properties)

Media

Investment highlights

A prime retail & leisure led mixed use collection in a core central Birmingham location, providing numerous attractive asset management options.

• The New Street and Temple Street Collection comprises three distinct but directly adjacent properties, forming a key holding in a core Birmingham City Centre location

• The collection comprises the high-profile assets of Piccadilly Arcade, White House and 5-9 Lower Temple Street, offered as a package

• Prime location at the very heart of Birmingham City Centre, in a highly strategic position fronting both New Street and Temple Street, the busiest footfall area in Birmingham

• Immediately adjacent to Birmingham New Street Station and Grand Central metro stop, providing exceptional profile, footfall and connectivity

• Birmingham is the UK’s second city, benefitting from both the 2nd largest primary retail population catchment and total available spend in the UK

• Numerous attractive short, medium and longer term asset management options through lettings, lease renewals/regears, rent reviews, wider repositioning or introducing alternative uses

• The buildings extend to approximately 60,117 sq ftin total with 62% retail / leisure and 38% office by floor area

Piccadilly Arcade 23,574 sq ft of retail accommodation arranged as two large leisure units (Clays & Be At One) and 12 boutique arcade units
White House 24,561 sq ft arranged as 4 prime retail units fronting New Street and Lower Temple Street, with 6 floors of offices above
5-9 Lower Temple Street 11,982 sq ft arranged as 3 retail units fronting Lower Temple Street, with 4 floors of offices above

• Freehold

• The retail & leisure elements are close to fully let and anchored by a blend of established operators and exciting new entrants

• The upper floors provide two successful office schemes, with asset management and rental growth potential, while providing future alternative use optionality

• Total rent of £1,624,989.80 p.a. with top 6 tenants accounting for 60% of the total income

• Overall average weighted unexpired term of 10.45 years to expiry, 6.45 years to break

• Immediate reversionary prospects with 10.00% of floor area being vacant

Proposal

We are instructed to seek offers in excess of £16,925,000 subject to contract and exclusive of VAT.

A purchase at this level reflects an attractive net initial yield of 9.00%, a low capital value of £282 per sq ft, with a near term running yield in excess of 10.00% achievable through letting vacant space and rent reviews due within 12 months.