Five Ways is Birmingham’s premier City Centre leisure asset prominently located on Broad Street, the City’s principal leisure location.
The Scheme is set to benefit from £149 million Metro extension due completion in 2021, with a new metro stop directly outside.
Fully let with key tenants including Cineworld Cinemas Ltd, The Deltic Group Ltd, Pure Gym Ltd, Euro Car Parks Ltd and Revolution Bars Ltd providing a total gross rental income of £3,030,452 per annum.
Held under two separate long leaseholds with a total passing head rent equivalent to the greater of £186,592 per annum (6% of the annual income) or £125,000 per annum. This long leasehold interest is for 99 years from 18th May 1998, with an option to extend for a further 51 years.
Strong and secure income profile with an average weighted unexpired lease term of 91 years to expiry and 14.89 years to breaks.
We are instructed to seek offers in excess of £44,700,000 subject to contract and exclusive of VAT for our clients long leasehold interest. This equates to a low capital value of £208 per sq ft. A purchase at this level reflects a 6.25% net initial yield assuming a sale of the special purchase vehicle and costs of 1.80%.
Birmingham is situated at the epicentre of the UK’s transport network and is surrounded by an outstanding multi-modal integrated transport infrastructure providing connectivity to 80% of the UK population within four hours and fast, affordable access to Europe and rest of the world.
Five Ways is well serviced by the immediate surrounds with the area comprising the highest concentration of hotels in the City and over 12,000 workers within a five-minute walk of Five Ways. Birmingham is a thriving tourist and business destination where many major hotel brands have a presence in the market including Travelodge, Hotel Du Vin, Adagio, Premier Inn and Stay City. The popularity of the City is largely attributable to its growing leisure segment, rebranding the City’s image as a modern leisure location where hotel occupancy rates now stand at an excellent 74.70%. Five Ways is ideally located at the centre of this active catchment.
The property is held under two separate long leasehold interests from the Trustees of the St Martin’s in the Bull Ring Trust for a term of 99 years from 18th May 1998, with an option to extend for a further 51 years, at a rent equating to the greater of 6% of the annual passing rent or £125,000 per annum.
The current ground rent payable is £186,592 per annum. A full summary of the head lease is available on request.