News writer Anna Constable reports on Birmingham’s Mailbox hitting the market for £120 million.
Birmingham’s Mailbox, a multi-use building with a storied history, is now up for sale, offering a ‘rare opportunity’ for investors, with a starting price of £120 million. Owned by Mailbox REIT, the property boasts a prime location in the city center, nestled beside the picturesque canals. With over 1.07 million square feet of space across a 6.2 acre footprint, it is home to more than forty tenants, generating a substantial annual rental income of £12 million.
It has a vacancy rate of just 4.6%, a figure that contrasts favourably with Birmingham’s citywide average of over 9%. This low vacancy rate underscores its potential for solid returns on investment.
The tenants renting space in the Mailbox include Everyman Cinema, renowned restaurants such as Aluna, Côte Brasserie, and Pennyblacks, and prestigious fashion brands like Harvey Nichols and Gieves & Hawkes. Moreover, it boasts two hotels and 144 private apartments, alongside 250,000 square feet of office space.
The BBC is the most well-known corporation to reside in the Mailbox and is currently renting the highest quantity of space, at 19%. However, it has been reported that they will be relocating to the former Typhoo Tea factory in Digbeth in the near future. This impending move poses a potential challenge for investors, as the BBC accounts for 18% of the current tenant income at the Mailbox, according to ITV News.
A marketing brochure, reviewed by Business Live, confirms the property’s prestige, describing it as a ‘rare opportunity to acquire one of the UK’s largest mixed-use assets, a workplace and lifestyle icon’.
It emphasises that ‘the Mailbox offers an established workplace and lifestyle ecosystem, with a balanced mix of office, leisure and cinema, retail and department store and car park uses.’
Mailbox REIT, responsible for the sale, became the first company to list on the International Property Securities Exchange, the world’s only stock market dedicated to trading shares in businesses owning single property assets. Property agency, JLL, is handling the enquiries regarding the new sale.
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