Birmingham City Council has exchanged on the purchase of the Red Rose Centre from LaSalle Investment Management, paying £10.4m – a net initial yield of 7.4%.
The 101,321 sq ft Red Rose Centre is a mixed-use scheme comprising a large single unit and 10 shops fronting the main shopping street in Sutton Coldfield, Lower Parade, all within an internal covered mall and courtyard.
The Red Rose Centre is also home to Sutton Coldfield’s main library, a night club and a gym in addition to a 550-space multi-storey car park.
The large anchor unit is secured on a lease to Sainsbury’s with 60 years unexpired, and is sublet to and occupied by Wilko.
Leader of Birmingham City Council, John Clancy, said: “This deal will provide a positive investment return and has the potential to spark the regeneration of Sutton Coldfield Town Centre. Hopefully we can now work with other landowners and the newly formed town council to deliver an ambitious vision for Sutton Coldfield.”
Cushman & Wakefield advised Birmingham City Council; Green & Partners represented LaSalle Investment Management.
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