Mailbox in line for major re-vamp

THE Mailbox in Birmingham is likely to face significant change over the coming years, owner Brockton Capital has hinted.

Speaking at a meeting of the Investment Property Forum at Barclays’ Latitude Club in Snowhill, David Zimmermann, a partner in the real estate investment firm, said: “Walk through The Mailbox and you will see what is good about it. Walk through the shopping part and you will see what needs to be fixed.”

Asked whether the building and its constituents were likely to remain the same physically, he remarked: “Unlikely.”

Questioned after his speech about Brockton Capital’s vision for The Mailbox, Zimmermann said a plan has been formulated but the company was not going to launch it publicly, but start implementing changes which the public would notice over time.

Zimmerman’s comments strongly suggest that Brockton plans to extend the bar and restaurant offering at The Mailbox and to reduce the presence of the less successful retail offering.

Talking about The Mailbox generally, he said: “The capital structure was completely broken when we bought the estate.”

“We bought it at a level that reflected the good underlying income in part of the building which we were able to leverage off. We also saw great upside in the flexibility of the space and new uses and occupiers that could be added.”

Brockton Capital – which bought The Mailbox for £127.1m from Birmingham Mailbox Ltd early last year – is not averse to risk where it could see an opportunity and commensurate returns, Zimmermann said.

He told the meeting that opportunities still existed in tough times, but emphasised: “We are pickier than we were before. For us it is all about the real estate fundamentals on an investment.”