Birmingham investment boom continues as O2 Academy building is sold

AN unnamed private investor has bought the O2 Academy building in central Birmingham.

It has bought 16-18 Horsefair for £3.155m, subject to a rental top-up, representing a net initial yield of 6.9%.

Located on Bristol Street, 16-18 Horsefair is let to Academy Music Group (AMG), the owner and operator of live music and club venue the O2 Academy.

AMG has 19 years unexpired on its lease and provides an annual income of £230,000.

Birmingham-based property consultancy Colliers International acted for Riverside Capital on the sale.

Alex Titheridge, director in Colliers’ national investment team, said: “As investors continue to look outside of the capital for better yield opportunities, Birmingham has emerged as a real hot spot for investment activity – with its sophisticated infrastructure programme setting it apart from other regional cities.

“At the same time, investor demand for the leisure sector is stronger than ever and we are seeing a large number of institutional and non-institutional investors seeking access to the leisure marketplace.

“These two aspects, combined with the secure income stream and reversionary prospects, meant that 16-18 Horsefair proved a very attractive opportunity for prospective investors.”