Property let to restaurant chain Prezzo sold to private investor
A building in Birmingham which is let to restaurant chain Prezzo has been sold to a private investor for £1.2m, reflecting the “strength of the investment market”, say the advisers on the deal.
The property on Alcester Road in Moseley was acquired for £1,225,000, providing a net initial yield of 5%.
Ankur Chadha, associate director of LSH’s capital markets team in Birmingham, who advised the buyer, said the acquisition demonstrated how private investors are still “desperately searching for stock with strong investment fundamentals”.
“With current interest rates still at their lowest, investors are buying real estate to find more attractive returns. It’s no surprise that the investment market for long-term, secure income is tightening – especially among the £1-3 million lot size range,” he said.
“Prezzo opened this restaurant last summer and have taken a 15-year lease, which provides a healthy income stream for my client. We are pleased to have advised our client in the off market acquisition of such a good investment.”
Richard Jones, head of retail and leisure at LSH Birmingham, said changes in consumer behaviour means that the restaurant market is strengthening.
“This is a great time for Birmingham’s food and beverage sector, especially as suburbs such as Moseley are attracting both independent restaurants, bars and cafes and well-established larger chains such as Prezzo,” he said.
The building was formerly occupied by Halfords Autocentre before being redeveloped by Birmingham Properties Group (BPG) and let to Prezzo last year.
It has been sold by BPG, which is involved in a wide-range of commercial and residential investments and developments in the Midlands. BPG was represented by Bruce Gillingham Pollard.
BPG director John Southall said: “We are extremely pleased with the outcome of this deal, which reflects both the strength of the investment market and also the desirability of Moseley. BPG are long-term investors in Moseley, having now completed a number of residential and commercial projects.
“BPG is continuing to invest in Moseley and is currently creating 49 luxury apartments at Moseley Central.”