Birmingham shopping scheme put up for sale by owner
A parade of shops in the centre of Birmingham is being sold as its owner looks to capitalise on the city’s strong commercial property sector.
Birmingham Properties Group is selling the five shops around the base of the Orion apartment building, which nestles between New Street Station and The Mailbox.
The group, which has appointed real estate advisor Savills to handle the sale, has set an asking price of £3.8m, which represents a net initial yield of 6.77% on the original sale.
The five units are fully let to Sainsbury’s, Subway, Alno Kitchens, The Stable and Tamatanga for a combined passing rent of £274,163. The average unexpired lease term to expiry is circa 12 years.
The nearby area has gained in popularity over the past 18 months following the opening of the Grand Central shopping development and the refurbishment of The Mailbox. Investment is also being pumped into John Bright Street, just around the corner from the shops, including the opening of a new easyHotel.
Matt Jenns, associate in the investment team at Savills, said: “This is a rare opportunity to acquire a prominent city centre retail investment adjacent to the recently completed Grand Central at Birmingham New Street Station. We are therefore anticipating strong market interest.”
