Investor sought for hotel and leisure offering at The Cube in Birmingham
The hunt has started for an investor purchaser to acquire the hotel, leisure and restaurant facilities at The Cube in Birmingham for around £13.5m
Lambert Smith Hampton (LSH) and joint agent Fleurets have been appointed to find a buyer for the Hotel Indigo, Marco Pierre White Steakhouse Bar & Grill, the Club and Spa, Bardolino Pizzeria and Canalside Ballroom on a sale and leaseback or sale and manage back basis.
The asset is currently trading as a multi-faceted hotel, hospitality and leisure business spanning 63,000 sq ft of space over six floors, with three long leases with around 115 years unexpired and a peppercorn rent.
The lifestyle brand Hotel Indigo, part of the InterContinental Hotels Group (IHG), offers 52 recently refurbished boutique-style bedrooms.
There are two Marco Pierre White branded restaurants as well as additional dining and bar facilities with a terrace area and self-contained canal-side events venue.
The independently branded Club and Spa has its own dedicated reception, 11m indoor swimming pool, saunas, gym, four studios, 16 treatment rooms, changing rooms and extends to around 19,000 sq ft.
The Health Club alone has benefited from an investment of around £2.5m in the last 24 months.
The business is being sold as the current owners EIS funded scheme has reached maturity.
The Cube is a 25-storey mixed-use development designed by Ken Shuttleworth of Make Architects.
The final phase of The Mailbox development, it also contains 135 flats and 111,500 sq ft of offices and shops.
Hugh Anderson, director of hotels and leisure at LSH, said: “This is exceptionally rare and unique opportunity to acquire a prime hotel in a major provincial city that’s located in an iconic mixed-use building.
“On a going concern basis, the significant capital expenditure made on the asset over recent years and the refurbished spa presents a considerable upside opportunity, once trading conditions normalise – with expectations that trading will quickly return to historic levels or above”.
Ed Sandall, director of Fleurets, added: “The sale and leaseback opportunity allows an investor to buy into an iconic building in Birmingham with an operation with a real point of difference to other food, beverage and hotel offers in the city, backed up by a strong and established management team all at a modest £215 capital value/square foot.”
