Acting on behalf of Riverside Capital, the National Investment team of Colliers International has sold 16-18 Horsefair in Birmingham to a private investor for £3.155m, subject to a rental top-up, representing a Net Initial Yield of 6.9%.
Located on Bristol Street in the heart of Birmingham city centre, 16-18 Horsefair is let to Academy Music Group (AMG), the owner and operator of live music and club venue, the O2 Academy. AMG has 19 years unexpired on its lease and provides an annual income of £230,000.
On the deal, Alex Titheridge, Director in Colliers International’s National Investment team, said: “As investors continue to look outside of the Capital for better yield opportunities, Birmingham has emerged as a real hot spot for investment activity – with its sophisticated infrastructure programme setting it apart from other regional cities. At the same time, investor demand for the leisure sector is stronger than ever and we are seeing a large amount of institutional and non-institutional investors seeking access to the leisure marketplace.
“These two aspects, combined with the secure income stream and reversionary prospects, meant that 16-18 Horsefair proved a very attractive opportunity for prospective investors.”
AMG is the UK’s leading owner and operator of nationwide live music and club venues and recently won The Sunday Times’ Profit Track ‘One to Watch’ Award. Other venues in the group include; O2 Academy Brixton and O2 Shepherd’s Bush Empire.
The long leasehold for the property was held by Costree Properties Ltd for a term of 999 years from 23rd October 2012.
