Cromwell Property Group is selling Five Ways Entertainment Centre in Birmingham at an asking price of £44.7m.
The leisure complex forms part of the Cromwell European Diversified Fund (CEDF). It has appointed Gerald Eve to market the asset at a net initial yield of 6.25%.
The price tag includes the possible sale of its special purchase vehicle.
The asset, on Broad Street, brings in rent of around £3m per year. The site measures 215,000 sq ft and houses a 12-screen cinema, 11 leisure units and two multi-storey car parks with 751 spaces.
Tenants include Cineworld, Grosvenor Casino, Euro Car Parks, Pure Gym, Revolution Bars, Five Guys and Nando’s.
John Rodgers, head of capital markets at Gerald Eve, said: “Ideally-located on Birmingham’s renowned Broad Street, Five Ways boasts strong visitor numbers and as a result benefits from some of the leading leisure and restaurant groups as occupiers. Offering good income and longer-term asset management opportunities, we are anticipating significant institutional interest in this asset.”
Cromwell, formerly known as Valad Europe, bought the complex for £35m from UK & European Investments in 2014.
Recent disposals
CEDF, previously known as Valad European Diversified Fund (VEDF), invests in core-plus/value-add assets in the UK, Germany and France across the office, retail and logistics sectors. Individual lot sizes range between €5-€50m.
The fund, which employs leverage between 50-65%, completed its first equity raise in 2013.
Notably, CEDF has been shedding some of its assets in recent times. M7 acquired an eight-asset Alpha portfolio from the fund for £68m this summer, which included five out-of-town retail warehouses.
Cromwell bought Valad Europe from Blackstone Real Estate Partners VI (Blackstone) and Valad Europe’s senior management for €145m in 2015.
The business was originally part of the Australian-listed Valad Property Group until it was acquired by Blackstone in 2011.
After that, Blackstone and management at Valad Europe split off from the rest of the group and reformed as Valad Europe.
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