This property compromises a building of 20,000 sq ft of ground floor leisure and multi let office above. Situated on Bennetts Hill, the property is located in the heart of Birmingham CBD between Colmore Row, New Street Station and Grand Central Shopping Centre.
The ground floor is currently let to Heineken on a 35-year term with over 14 years remaining, with the surrounding area benefitting from an influx of high-profile leisure tenants including the IVY café, Gaucho and the Botanist.
The increased amenity along with excellent transport links including the proposed HS2 scheme has resulted in a significant growth in the office market especially for smaller suites. The offices are currently let to six tenants on standard leases with rents ranging from £8.97psf to £12.92psf. Within the first six months after acquiring the property, we agreed two surrenders with tenants on very low rents and high service charge caps and this has enabled us to re-let the space at significantly increased rent and on good lease term lengths.
We are currently rolling out a comprehensive internal refurbishment of the office space to convert to a trendy studio specification and reposition the product to appeal to design/creative companies. After completing a show suite and various common parts including the entrance in September 2018, we exchanged on the whole 5th floor to a software company, at a rent of £22.50psf. The new rental tone is more than doubling the net effective previous rent and also set a new record for Bennetts Hill.