Mailbox sale shows growing investor confidence

THE £127.1m sale of the mixed-use Mailbox complex in Birmingham should be seen as a sign of growing investor confidence.

The announcement on Wednesday that Brockton Capital and Milligan had paid £9m over the asking price heralded a new dawn in the relatively short history of the former Royal Mail sorting office, converted by entrepreneurs Alan Chatham and Mark Billingham.

Ned Jones, below, associate director in the investment agency team at advisors DTZ in Birmingham, believes the deal is a welcome boost to the second city’s investment market.

“The purchase price demonstrates there is strong investor confidence in the Birmingham market,” he said.

“The deal is one of three major transactions over £100m, either completed or in the pipeline in Birmingham in the last 12 months, which includes the sale of Brindleyplace to US-based investor Hines and Moorfield and the anticipated sale of Ballymore’s Two Snow Hill.

“These deals, together with other notable acquisitions, such Cabot Properties’ £24m purchase of the Cadbury’s distribution centre in the north of the city, demonstrate that Birmingham remains an attractive option to both UK and overseas investors.

“The purchase will allow further developments in the city, including Mark Billingham and Alan Chatham’s proposed regeneration of the Birmingham Post and Mail’s former offices , to be pushed forward which can only be a further positive sign that there is activity in the market.”