Landmark Birmingham building to be placed on the market for £120m
The Mailbox is set to be put on the market following a challenging period where dividends were suspended and its value dropped.
Comprising 1.07m sq ft of space, the Birmingham landmark building owned by Mailbox REIT is looking for bids in excess of £120m.
Its valuation had improved by 3.50% to £162.5m in the first half of 2023, from its December 2022 valuation of £157m.
The year-end revaluation for 2022 had reduced the property’s value from £189.7m to £157m, and so increased the property’s loan-to-value (LTV) ratio to 69.1% – well above the agreed covenant of 60%.
A loan note of £27.5m has been raised to fix the default, with £7.1m of this raised and paid down and £1.5m paid out of reserves, leaving £18.9m to pay as of September 29.
Mailbox’s major tenants across food, fashion, offices and hotels include Harvey Nichols, Everyman Cinema, Miller & Carter and a 50,000 sq ft co-working hub run by Spaces.
The BBC is expected to exit its 120,000 sq ft space in 2026, but the Mailbox does anticipate it will need a two-year extension as its new location at the Typhoo Tee factory will not be ready in time.
Following the closure of the International Property Securities Exchange (IPSX), Mailbox REIT has delisted and will not list the building on another exchange.
A Mailbox REIT spokesperson confirmed the sale reports first seen in Business Live were correct to TheBusinessDesk.com, with JLL appointed to market the scheme.
JLL has been contacted and representatives said the firm would not be commenting.