Prominent city centre retail scheme sold in multimillion-pound deal
A prominent prime high street retail scheme in central Birmingham has been acquired in a deal worth more than £12m.
DTZ Investors, represented by Franck-Steier Price, has recently completed the acquisition of the Caxtongate property on behalf of Allianz.
The building is located in Birmingham’s prime retail core fronting on to New Street and Cannon Street.
Grand Central Shopping Centre, The Bullring and Apple’s flagship store are all in close proximity.
The property comprises six retail units extending to 32,284 sq ft with 24 residential apartments on the second and third floors.
The property is Grade II listed and is let to five national brands including Muji, Charles Tyrwhitt, White Stuff, Bravissimo and Jigsaw.
There is currently one unit vacant which is now under offer to a national retailer on a new 10 year lease.
The total current income is £790,000 a year rising to £890,000 on completion of the new letting.
Mark Sealey, DTZ Investors, said: “The acquisition is in accordance with the fund’s strategy and has enabled the client to gain exposure to a strong major UK city and supports a strategy of investing into multi-let assets in large urban environments.”
The property was acquired from Lasalle Investment Management, represented by JLL, for £12,435,000 which reflects a net initial yield of 5.95% reverting to 6.71% on completion of the letting.
