The Mailbox in Birmingham Sells Above Asking Price
The Mailbox, an iconic office property in Birmingham’s city centre, has been sold for ┬ú127.1m to London-based investment partnership Brockton Capital and Milligan.
The Mailbox, a former Royal Mail sorting office on Wharfside Street, provides over 640,000 sq ft of office space combined with retail units, restaurants and apartments. Property entrepreneurs Alan Chatham and Mark Billingham bought The Mailbox for ┬ú4m in 1998, and opened in 2000 following a full conversion and fit-out of the space.
Current tenants include the BBC, Network Rail, Harvey Nichols and Emporio Armani.
The transaction was announced this week along with news that the sale was agreed at ┬ú9m over the original asking price, which experts feel is a sign of growing investor confidence.
According to TheBusinessDesk, Associate Director at advisors DTZ in Birmingham, Ned Jones, believes the deal is a welcome boost to the city’s investment market.
“The purchase price demonstrates there is strong investor confidence in the Birmingham market,” he said. “The deal is one of three major transactions over ┬ú100m, either completed or in the pipeline in Birmingham in the last 12 months, which includes the sale of Brindleyplace to US-based investor Hines and Moorfield and the anticipated sale of Ballymore’s Two Snow Hill.”
Ned went on to say that these deals demonstrate Birmingham as an “attractive option” to investors both in the UK and abroad, and believes that the transaction will allow other developments to go ahead – which he says “can only be a further positive sign that there is activity in the market.”
David Zimmermann, partner of London-based Brockton Capital – one of the investors in The Mailbox – said that the company are “excited” to be a part of one of Birmingham’s most iconic buildings.
“The innovative work of Birmingham Mailbox Limited in converting the giant former sorting office into a thriving mix of offices, restaurants, shops, hotels and apartments has been transformational for the centre of Birmingham” he said, adding that the team have plans and “substantial funds” on-hand to enhance the building, attract new businesses and “further cement its reputation as one of the best places in the city.”
Entrepreneurs Mark Billingham and Alan Chatham are now reportedly planning a regeneration scheme of the Birmingham Post and Mail’s former offices.
Find out more about office space in Birmingham online at officebroker.com.