AEW UK Core Property Fund (AEW) has announced the acquisition of the 3.14 acre Fiveways Entertainment Centre on Broad Street, Birmingham, for £25.1m, reflecting a purchase yield of 9.5%.
The property is let to 11 leisure tenants – Cineworld, PureGym, a casino, nightclub and seven restaurants, including Nando’s and Five Guys – and two leases to Euro Car Parks, with a combined WAULT of over 11 years to expiry.
Fiveways is located at the southern end of Broad Street, one of the most vibrant streets in the centre of Birmingham and an established night-time economy location popular with students. It is within walking distance of the key commercial centres of Brindley Pace, Edgbaston, Paradise and the International Convention Centre.
The Broad Street area is set to continue to benefit from significant residential development, there is a pipeline of c.3,000 BtR units to be delivered in the city centre over the next three years. The £149 million Metro extension, which is due to complete later in 2021, connecting Grand Central station with Edgbaston, will have a new tram stop directly outside the Fiveways complex. The Mercian and The Square are both close by on Broad Street, which also has the highest concentration of hotels in the city including Jury’s Inn, Hampton by Hilton, Premier Inn, Travel Lodge, Novotel and Park Regis.
Edward Long, Director at AEW, said: “We are pleased to have acquired this prime leisure asset located at the heart of Birmingham’s bustling night-time economy. The city has seen a renaissance over the past 10 years, with significant developments such as Grand Central, Birmingham Library, Brindley Place, and numerous office and residential schemes. We believe the fundamentals remain very attractive, with Birmingham’s growing young professional and student population driving demand for entertainment and residential accommodation. COVID-19 restrictions have had a huge impact on the leisure sector, however, leisure is fundamental to people’s well-being across all demographics. Leisure activities are no longer just for special occasions, most UK consumers regard leisure as an integral part of daily life. As such, we look forward to COVID-19 restrictions lifting and a return to normality and anticipate a strong bounce back in the leisure sector.”
Lunson & Mitchenall acted on behalf of AEW UK Core Property Fund in the acquisition.
