Property group acquires Brindleyplace development in £236m portfolio deal

Water’s Edge at Brindleyplace, Birmingham

Water’s Edge at Brindleyplace, Birmingham, a 62,000 sq ft canal-side restaurant and bar development has been snapped up by Sterling Property Ventures (Sterling).

Sterling has acquired the development from British Airways Pensions Trustees.

Water’s Edge is part of a larger mixed portfolio of seven commercial property assets acquired by Sterling from British Airways Pensions for £236m.

The Brindleyplace development features 12 units, fully let to tenants such as All Bar One, Wagamama, Cosy Club and Slug and Lettuce.

Located on a 1.18-acre site, the development has been owned by BA since its inception in 1994.

James Howarth, Sterling’s managing director, said: “Sterling now has three significant assets in Birmingham. The Water’s Edge enjoys a prominent location at Brindleyplace, opposite the International Convention Centre and close to the National Sea Life Centre and Utilita Arena.  It is one of the best performing regional restaurant/bar schemes in the UK.”

Sterling was represented by Knight Frank and HP Four LLP on the British Airways Pensions deal. Colliers undertook building surveys, with MAPP providing property management advice.

Fund manager BlackRock, through its Real Estate business, led the deal on behalf of British Airways Pension Trustees, with joint agents ACRE Capital, Morgan Williams and Capital Real Estate Partners handling the sale.

The larger portfolio acquired by Sterling includes two distribution units, the 330,894 sq ft Cubico unit at Calder Park in Wakefield and the 231,252 sq ft Super B unit at Interchange 26 in Bradford.

It also has two Grade A office buildings totalling 89,639 sq ft at Windsor Dials in Windsor and the 144,906 sq ft Chapel Quarter development in Nottingham, which includes a 120-bed Premier Inn hotel, offices and five retail and leisure units.

Additionally, the portfolio features the 449,079 sq ft Hempstead Valley retail and leisure scheme in Gillingham, three retail warehouses totalling 74,060 sq ft in Longwell Green, Bristol and the 62,551 sq ft Water’s Edge F&B scheme at Brindleyplace in Birmingham.

The properties, held under freehold or long leases, generate a combined income exceeding £18.5m and will be managed within Sterling’s SPV Endeavour, supported by equity investor LetterOne.

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