Broad Street units change hands in £5.4m deal

Three units along Birmingham’s popular Broad Street have been sold in a deal worth more than £5m.

An opportunity fund advised by Tristan Capital Partners, and Addington Capital, has sold the units to Downing Group for £5.4m.

The units, which total 35,062 sq ft, are let to Bierkeller, Velvet Music Rooms & Sugar Suite and Food Republic for a total passing rent of £425,242 per annum, as well as car parking on the upper floor.

The properties were acquired in 2014 by EPISO 3, a fund advised by Tristan Capital Partners and Addington Capital, as part of the £150m Project Tree portfolio.

Alex Wagstaff, partner at Addington Capital, 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.”

Tristan Capital Partners and Addington Capital were represented by real estate advisor Savills, with the price reflecting a net initial yield of 7.39%.

Ned Jones, investment director at Savills Birmingham, said: “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.