ST JAMES HOUSE Birminghambirmingham, B1 1DB HOTEL DEVELOPMENT OPPORTUNITY

St James House ST JAMES HOUSE BIRMINGHAMBirmingham, B1 1DB HOTEL DEVELOPMENT OPPORTUNITY

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HOTEL DEVELOPMENT OPPORTUNITY SUMMARY

• To be sold on behalf of the Joint LPA Receivers • Planning consent granted May 2021 for redevelopment to 10 storey ‘Aparthotel’ with 156 apartments • Terms agreed with Residence Inn by Marriott on franchise agreement • 0.25 miles to Birmingham New Street Station and Grand Central and close by to Birmingham CBD • Existing building – 35,894 sq ft GIA • 999 year long leasehold interest at a peppercorn rent • Prominently situated on the edge of Birmingham’s CBD on the busy A38 Bristol Road • Price on Application

For more information, please contact:

Simon Robinson +44 (0) 7771 860 985 Senior Director [email protected]

Mark Robinson +44 (0) 7342 069 808 Senior Director [email protected]

BNP Paribas Real Estate 9 Colmore Row, Birmingham B3 2BJ St James House Birmingham, B1 1DB

WELL CONNECTED

Motorways Airlines Railways

The city benefits from 3 main stations, Birmingham is situated Birmingham airport is due a further New Street, Moor Street and Snowhill. within the heart of expansion at a cost of £500m. This is England’s motorway expected to increase passengers numbers All offer regular services reaching network linking the M1, by a further 40% over the next 15 years. the majority of the UK. M5, M6, M40 and M42 resulting in over 90% of the Paris 1hr 15 mins population being within London (Euston) 1hr 20 mins Edinburgh 1hr 10 mins 4 hour travel time. BNP Paribas Real Estate Manchester 1hr 29 mins Dublin 1hr 5 mins 9 Colmore Row, Birmingham B3 2BJ Leeds 2hr 3 mins Dubai 6hr 55 mins Edinburgh 4hr 57 mins New York 7hr 45 mins

3 www.realestate.bnpparibas.co.uk St James House Birmingham, B1 1DB

LOCATION, DEMOGRAPHICS AND ECONOMY

Birmingham is Britain’s ‘second’ city, situated Recently Goldman Sachs have announced their approximately 105 miles north-west of London. commitment to opening a Birmingham office, joining the likes of Government departments such Birmingham has a population of 1.1m and has one as Department of Workplace and Pensions showing of Europe’s youngest populations with 45% of its the growing and increased appeal from office occu- residents being under the age of 30. piers being drawn to Birmingham as a city.

The city has the largest economy outside London In addition, the city has the second highest retail with a GVA of close to £30 billion, with 75,000 spend (pre-Covid) outside London and is a signifi- companies based in Birmingham, of which over cant UK tourist and conferencing destination. 700 are international firms, contributing to Birmin- gham being consistently ranked as one of Europe’s Birmingham has an established hotel sector cate- most investable cities. Over 100,000 people are ring for the business, tourist and conferencing sec- employed in the professional and financial services tors. Premier Inn are to open a third 235-bed city sectors in Birmingham. centre hotel at Eastside, close to the HS2 Curzon Street Station and within the CBD the refurbished

* Red line below for indicative purposes only St James House Birmingham, B1 1DB

luxury 4* Grand Hotel is completed and will open • The Midland Metro in H2 2021 will run from in May 2021. Wolverhampton to Edgbaston via the city centre and the Solihull extension to the Airport will be Transport infrastructure projects have materially operational in 2026 enhanced Birmingham’s connectivity. The BTS and BTR residential market has seen signi- • HS2 is under construction and Phase 1 between ficant new development in the city centre and edge Birmingham and London will be operational in of city centre locations. Major completed or near- 2031 and reduce train travel time to London to term completed schemes include The Forum close 49 minutes to Bull Ring, the 603 unit Allegro development at Exchange Square and Moda Living’s The Mercian, • Birmingham International Airport has expan- comprising 458 units on Broad Street. ded with the runway extension now enabling flights to the Far-East and the west coast of America and is aiming for passenger growth to 18 million people within 10 years

St James House

Central Business District

3 A4400

CITY CENTRE Birmingham 1 4 New Street Birmingham 2 Moore Street Snowhill 3 2 Station HS2 Curzon 4 1 Street 6 7 5

DIGBETH 5 Mailbox CHINESE QUARTER 6 Grand Central

GAY VILLAGE 7 Bullring

5 www.realestate.bnpparibas.co.uk St James House Birmingham, B1 1DB

THE BUILDING

St James House is a prominent 1970’s office building with ground floor entrance / reception and 6 upper office floors, outlined red opposite.

The building is vacant and suitable for redevelopment for a variety of uses including hotel / hospitality, residential or office, subject to Planning and other Consents. There is currently planning consent granted to demolish the existing building and develop a 10 storey ApartHotel with a franchise agreement in place with Marriott for a Resi- dence Inn.

Whilst St James House represents a self-contained redevelopment / repositioning opportunity, the building is part of a larger site comprising the 02 Aca- demy and an NCP car park which could potentially form part of a larger, more comprehensive redeve- * red and blue lines above for indicative purposes only lopment opportunity. The O2 Academy and NCP car park sites are outlined in blue opposite.

Floor Size sq ft (NIA) Size sq ft (GIA) Ground 0 1,455 1st Floor 524 762 2nd Floor 1,680 4,734 3rd Floor 5,160 6,323 4th Floor 5,160 6,323 5th Floor 5,160 6,323 6th Floor 5,160 6,323 7th Floor 5,165 6,323 TOTAL 28,004 38,566 St James House Birmingham, B1 1DB

SITUATION

St James House is located on Horsefair which is • Maldron Hotel, A38 Suffolk Street Queensway – part of the A38 Bristol Road, a major arterial route proposed 330 room development by Dalata and heading south-west from the city centre and provi- McLeer & Rushe, adjoining Mailbox. ding connectivity to the M5 motorway. • Bristol Road / Essex Street – directly opposite St As such St James House is on the edge of Birmin- James House Regal Property Group have com- gham’s CBD and immediately adjoins Birmingham’s menced development of a 28 storey, 154 unit 02 Academy, a well-known music venue and a mul- BTR scheme, due for completion end-2022. ti-storey NCP car park. The building is close to the iconic mixed-use Mailbox and a short walk from • New Monaco, Bristol Street – 2021 consented Birmingham New Street Station, Bullring shopping c.1,000 unit residential development by MCR centre and the city centre office core. Property Group.

The immediate location is the focus of conside- • To the rear of St James House Court Collabora- rable current and proposed residential, hotel and tion / Top Capital Group have recently comple- office development including: ted The Axium, Holloway Head, a 304 unit BTS residential scheme, enhancing the immediate • Axis, A38 Suffolk Street Queensway – proposed location as a residential destination on the edge office redevelopment to create c.1m sq ft of of Birmingham’s CBD. office, hotel and retail space by LCR, adjoining Mailbox. • To the rear of the property, 6-12 Bow Street is under offer for redevelopment for residential.

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MICRO LOCATION

The Axium The Mailbox Maldron Hotel Bristol Road/Essex Street Court Collaboration / Top Substantial retail, office Proposed 330 room Regal development of Capital Group have recently and hotel complex recently development by Dalata and a 28 storey, 154 unit BTR completed a 304 unit BTS acquired by M7RE in 2019 McLeer & Rushe, adjoining scheme, due for completion residential scheme for c £189m Mailbox end-2022

6-12 Bow Street

Under offer for redevelopment Opened in 2015 and home to for residential Adjacent 3,800 capacity 211 Bedroom hotel as part over 60 retail stores spanning music venue of a 40 storey building 500,000 sq ft St James House Birmingham, B1 1DB

EXISTING FLOORPLANS

7th Floor 3rd Floor

6th Floor 2nd Floor

5th Floor 1st Floor

4th Floor Ground Floor

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PROPOSED SCHEME

Planning Application was submitted in January OPERATIONAL AGREEMENT 2021 and achieved full Planning Consent in May Franchise Agreement in place with Residence 2021. Inn by Marriot. Further details are available on request. The Consent is for a change of use of existing building from Office E(g) to a serviced aparthotel C1, APARTHOTEL SECTOR including part retention of the existing building to The UK is one of the leading countries in the ser- level 3 which element is to be extensively refurbi- viced apartment sector. Pre-pandemic, the global shed to provide accommodation suitable for asso- supply of serviced apartments relative to the oce- ciated communal and service spaces. rall hotel sector ranged between 3.1% and 6.4% whereas demand growth has ranged from 2.6% The scheme is then to demolish level 4 above and and 9.4%. research indicates there is currently a replace with a new 9 floors. Once completed the distinct lack of long stay product in Birmingham development will provide 3 storeys of accommodation supporting the hotel with the further 9 storeys • During 2019 occupancy increased at an average creating hotel accommodation to total 156 ser- of 1.65% in the Birmingham hospitality sector viced aparthotel units. with REVPAR (revenue per available room) improving an average of 3.6% per annum Relevant documentation is at: 2020/02657/PA • The ADR (average daily rate) in the Birmingham St James House Planning Application Hospitality sector increased on average 2.2% per annum

• As of 2019, ADR had increased from £84.15 to £95.70 over the last six years St James House Birmingham, B1 1DB

SERVICE APARTMENT LOCATION PLAN

JEWELLWERY QUARTER

12 A4400 CITY CENTRE 14

11 8 2 10 GAS STREET BASIN 4 CHINESE 3 DIGBETH QUARTER WESTSIDE 5 1 6 GAY VILLAGE

Ref. Hotel No. of Rooms 11 StayCity Serviced Apartments Arcadian Centre 79 22 Shaftesbury House by CityQuarters 17 33 PREMIER SUITES Hotel 67 44 The Spires Birmingham Spires 30 55 The Postbox by Bridgestreet 60 66 Comfort Zone @ Parkside 24 77 Staying Cool Apartments @ The Rotunda 36 88 Aparthotel Adagio 108 99 Staybridge Suites 179 1010 Comfort Zone Cutlass Court Apartments 6 1111 SACO Birmingham Brindleyplace 35 1212 StayCity Newhall Square 170 1313 City Nites 75 1414 ApartmentBloc 31

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SITE AREA

The property occupies a site area of c. 0.19 acres (0.077 ha).

The total site area of the sites comprising St James House, the 02 Academy and the NCP car park is c. 1.96 acres (0.79 ha) TENURE

The property is held on a 999 year lease at a peppercorn rent commencing 12 March 2019 under PROPOSAL Title no. WM263531

The freeholder is Standard Securities Ltd (company no. 00979400), which also owns the freehold of the 02 Academy building. Note: Davidson Kempner own Offers are invited for the long leasehold interest the freehold of the adjoining NCP car park property. in the property. Alternatively, offers on a forward funding or forward commitment basis will also be The head lease is available on request. considered.

EPC Price on Application. D – 77 SALE OFFERING CONDITIONS

No representations or warranties will be given in relation to the sale of the Property by the Joint LPA Receivers. The sale will be without title guarantee and without provision of a standard replies to enqui- ries package and no reliance on any information provided will be available. The sale documents will contain the usual exclusions on liability and other provisions that are standard for a sale by the Joint LPA receivers. St James House Birmingham, B1 1DB

CONTACT

For more information, please contact:

Simon Robinson Mark Robinson +44 (0) 7771 860 985 +44 (0) 7342 069 808 Senior Director Senior Director [email protected] [email protected]

BNP Paribas Real Estate 9 Colmore Row Birmingham B3 2BJ

Misrepresentation Act 1967: BNP Paribas Real Estate Advisory & Property Management UK Limited for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BNP Paribas Real Estate Advisory & Property Management UK Limited nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. April 2021

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