£127m Mailbox sale is "welcome boost"
The purchase of Birmingham’s iconic Mailbox building demonstrates that there is “strong investor confidence” in the city’s property market. That’s according to Ned Jones at property agency DTZ in Birmingham, following the £127m buyout by Brockton Capital.
Brockton Capital acquired the building on behalf of Brockton Capital Fund, which will be partnering in the transaction with co-investor Milligan.
The site was bought from Birmingham Mailbox for a total of £127.1m. The deal comprises 640,980 sq ft of lettable accommodation including office, retail and restaurant units, and a 686-space public car park. Both cover a site of 4.8 acres in Birmingham’s city centre.
Ned Jones, associate director of the investment agency at DTZ in Birmingham, said: “News that London-based Brockton Capital, in partnership with Milligan, has purchased the iconic Mailbox complex will provide a welcome boost to Birmingham’s investment market. The purchase price, £9m over the original asking price, demonstrates that there is strong investor confidence in the Birmingham market.”
The deal is one of three major transactions over £100m either completed or in the pipeline in Birmingham in the last 12 months. Others include the sale of Brindleyplace to US-based investor Hines and Moorfield and the anticipated sale of Ballymore’s 2 Snow Hill.
Jones added: “The purchase will allow further developments in the city, including Mark Billingham and Alan Chatham’s proposed regeneration of the Birmingham Post and Mail’s former offices, to be pushed forward which can only be a further positive sign that there is activity in the market.”
Current tenants at The mailbox include BBC, Network Rail, Harvey Nichols, Emporio Armani and Thomas Pink. The estate also includes 144 residential apartments together with 165 private dedicated car spaces, two hotels (279 bedrooms), all let on long ground leases.
