String of Birmingham City Council commercial investments to go under the hammer
Bond Wolfe Auctions is offering seven freehold commercial ground rents on behalf of Birmingham City Council in its next auction.
Ron Darlington, consultant director of Bond Wolfe, said: “Investors are always keen on bricks and mortar offering solid returns, and in an uncertain economic environment we are anticipating keen interest in the lots we are offering.
“The market for commercial ground rents has risen in popularity over recent years, especially from institutional investors looking for long term returns.”
In Sherbourne Road the ground rents on two adjoining properties will go under the hammer. The first has a 75 year lease from January 1973 with a ground rent of £7,000 a year, subject to rent reviews every 21 years. The neighbouring property has a 70 year lease from October 1978 with a ground rent of £5,000 a year, with rent reviews every seven years.
Another lot is for the freehold commercial ground rent on a two storey car show room and premises at 367 Moseley Road in Sparkbrook, which has a guide price of £225,000 plus.
The business will remain unaffected, and the property has around 46 years unexpired at a ground rent of £6,750 a year, with rent reviews every 25 years.
Across the city in Bordesley, the freehold commercial ground rent on Merit House in Stanhope Street is available with a guide price of £200,000 plus, and is subject to a 100 year lease from August 2015 with a ground rent of £4,000 a year and rent reviews every 25 years.
At 31-33 Sutton Street, the freehold commercial ground rent for a 75 year lease from September 1961 producing £335 a year with no rent reviews is offered with a guide price of £225,000 plus.
A guide price of £225,000 plus is offered on the freehold commercial ground rent of a two storey premises at 8-10 Washington Street, which has a 75 year lease from September 1956 at a ground of £70 per annum with no reviews.
Radnor House, Radnor Street, Birmingham, has a 99 year lease from September 1978, and a ground rent of £5,000 a year with rent reviews every seven years – guide price £150,000 plus.
The final Birmingham City Council lot being offered is 11 Pentos Drive, Birmingham, which is subject to a 99 year lease from 1987 and has an annual ground rent of £200, with rent reviews in April 2037 and April 2062 – guide price £75,000 plus.
The Birmingham City Council lots are among 158 lots that will appear in Bond Wolfe’s next auction which starts at 9am on Thursday 19 May. The auction will be livestreamed via Bond Wolfe’s website with remote bidding by proxy, telephone or internet only.