Orchard Street offloads Birmingham’s Exchange Buildings to Corum
Orchard Street Investment Management has sold the freehold of the Exchange Buildings in Birmingham to Corum XL for £23m.
The mixed-use hotel and retail investment is located at the entrance to Grand Central train station and at the junction of New Street, Corporation Street and Stephenson Place.
The property comprises four retail units over 27,072 sq ft, a 140-bedroom Premier Inn hotel, rooftop telecoms and 37 car-parking spaces.
Orchard Street Investment Management has sold the freehold of the Exchange Buildings in Birmingham to Corum XL for £23m.
The mixed-use hotel and retail investment is located at the entrance to Grand Central train station and at the junction of New Street, Corporation Street and Stephenson Place.
The property comprises four retail units over 27,072 sq ft, a 140-bedroom Premier Inn hotel, rooftop telecoms and 37 car-parking spaces.
It is let to five tenants – HSBC, Premier Inn, McDonald’s, Baguette 4 U and Greggs – with 97% of income secured to 5A1 and 5A2 covenants. The asset has a WAULT of 11.08 years to expiry and 8.29 years break.
Knight Frank acted for Orchard Street and was also appointed by the long leaseholder of the building, governors of charitable trust the Schools of King Edward VI, to sell the long leasehold for offers over £25.6m in April this year.
The marketing price for the long leasehold reflected an 8% net initial yield, 7.31% reversionary yield, and a capital value of £302 per sq ft.
The property is held on long leasehold from the Schools of King Edward VI in Birmingham for a term of 200 years from 25 March 2015, 191 years unexpired.
The ground rent is paid quarterly in advance and base rent is £143,192 pa, reviewed every 40 years, with the next review in March 2055.
Green & Partners acted for Corum XL.
Image © Knight Frank
