1

CENTRAL HALL

196 – 224 Corporation Street, Birmingham, B4 6QB 2

A RARE OPPORTUNITY TO REDEVELOP A GRADE II* EXECUTIVE LISTED BUILDING INTO A LANDMARK LUXURY HOTEL SUMMARY & APARTHOTEL Savills are appointed by joint Administrators - David Rubin & Partners LLP and Abbott Fielding Limited – to offer for sale by way of a site sale and subject to retail under leases, an exceptional hotel led, mixed - use redevelopment opportunity in .

> Rare freehold development opportunity to acquire arguably one of the City’s most iconic Victorian buildings and redevelop it into a premium hotel and aparthotel together with extensive food and beverage facilities and expansion potential for a three storey extension.

> Built in 1904 by famous local architects Ewan Harper and James A. Harper, the landmark Grade II* listed building totals 90,417 sq ft (8,400 sq m) on a site of 0.56 acres (0.23 ha) and occupies a prominent location in the centre of the City, benefitting from excellent accessibility by road and rail.

> The Property benefits from full planning permission for over 150,404 sq ft (13,973 sq m) of accommodation comprising a 147 bedroom hotel and 75 unit apart-hotel totalling 222 bedrooms, together with extensive F&B facilities including a centrepiece ‘Gastro Hall’, a roof terrace sky bar, a nightclub / multi-purpose space and retention of the ground floor retail units.

CGI of proposed development - Source: ICA 3

BIRMINGHAM

Known as the ‘city of a thousand trades’, Birmingham is now the UK’s second biggest city with a population of 2.8 million people expanding to 4.3 million in the wider Birmingham metropolitan area. Following unprecedented levels of investment and development, the City’s renaissance has established itself as the strongest economic centre outside of London and home to over 500,000 employees, the highest of any regional UK city. The City is also home to three major Universities and with a high graduate retention of 49%, makes it Europe’s youngest major city with nearly 40% of the population under 25 contributing to a skilled & talented workforce. Situated 120 miles (193 km) north west of London, Birmingham has consistently been voted the UK’s most popular destination outside of the Capital for meetings, conferences and events accounting for around 40% of the UK’s conference and exhibition trade hosting over 850 events annually across facilities such as the National Exhibition Centre and the International Convention Centre. With over 600 parks and more open space than Paris, Birmingham is one of the UK’s greenest cities. In addition, Birmingham has a strong track record of delivering large international sporting events recently hosting the Gymnastics World Cup in the Resorts World Arena, the IAAF World Indoors Athletics Championships at , the ICC Champions Trophy and The Ashes at Edgbaston and Rugby World Cup fixtures at . Birmingham will also play host to 2022 Commonwealth Games, which is expected to draw in up to one million additional visitors to the City over the 11-day sporting event. The Cube The 4 The Mailbox The Barclaycard Arena BT Tower Birmingham New St Station St Birmingham New

Grand Central Grand St Philip’s Cathedral Philip’s St The Bullring The Snow Hill Station Snow 2

Birmingham Moor Street Station Birmingham Moor Street

Corporation Street Corporation 3 Snowhill 1 Snowhill & Exchange Square & Exchange Masshouse Curzon Street - Proposed HS2 Terminal - Proposed Street Curzon

Colmore Business District Business Colmore Law Courts Law Birmingham City University Birmingham Children’s Hospital Birmingham Children’s Birmingham & Fazeley Canal Birmingham & Fazeley Lancaster Circus Lancaster Campus University Aston 5

SITUATION

Defined by historic and landmark buildings, Central Hall occupies a prominent corner site in Birmingham’s characteristic Victorian Quarter on the junction of Corporation Street and Ryder Street, opposite the terracotta and neighbouring the Crown Court. Corporation Street serves as an arterial commercial street and the spine of the Victorian Quarter extending from Birmingham New Street Train Station to James Watt Queensway. Central Hall occupies a convenient location for both leisure and business visitors located in close proximity to the City’s core corporate and leisure demand drivers. Birmingham’s major central business districts in Snow Hill and Colmore Row situated 300 and 400 metres southwest respectively boasts international legal and financial corporate occupiers including KMPG, Barclays, Shoosmiths and Ernst & Young. The adjacent Learning Quarter to the northwest is also home to key education institutions and a growing tech hub including Aston University, Birmingham City University and Birmingham Conservatoire, whilst the city’s prime retail centre along New Street and the Bull Ring with over 200 stores is located 500 metres south. The Property benefits from excellent accessibility to the wider regional transport network with direct road access to the adjacent James Watt Queensway connecting to the Queensway ring road. The City’s key public transport nodes – New Street, Snow Hill, Moor Street, Curzon Street train stations - all lie within a 500 metre walk from the Property including the proposed new Curzon Street Station to serve HS2 which will be situated just 300 metres to the southeast. The NCP Birmingham Londonderry Car Park is also located just 100 metres from the Property, offering significant car parking for 1,073 vehicles. 6

THRIVING CULTURAL COMMUNITY

NEW 1 Magistrates’ Court 2 Birmingham City University TOWN A34 Jewellery A41 Quarter 10 A38 J EWELLER Y A41 Lancaster Circus Aston Q U A R TER 3 3 Aston University 4 Snow Hill St Paul’s University A457 Square Birmingham Children’s Hospital 4 Royal Birmingham BIRMINGHAM Conservatoire SNOW HILL 1 5 University 2 5 Proposed HS2 Curzon Terminal 6 Birmingham Cathedral College Birmingham 6 The CURZON STREET 8 Square Birmingham Hotel Barclaycard Museum & Art C I T Y La Tour Arena Birmingham Gallery CENTR E A4540 Repertory Theatre National Odeon BIRMINGHAM Cinema Sea Life Centre MOOR STREET Selfridges 7 Bullring & Grand Central 8 Birmingham Museum Brindley BIRMINGHAM Place The NEW STREET Bullring New The Alexandra 7 Mailbox Theatre O2 Institute 9 Hippodrome Theatre Broadway 9 The Mailbox 10 Jewellery Quarter Plaza O2 Academy Birmingham A456

Five Ways Sunset Park

A4540 Moonlit Park The White Birmingham City Room Studios University City South Campus

Birmingham Botanical Gardens A38

University of Birmingham The Vale EDGB A S T O N

Calthorpe Park Edgbaston Golf Club M8

4hr 50mins

M74

3hr 10mins

7

2hr 02mins HULL EXCELLENT CONNECTIVITY LEEDS 2hr 05mins 1hr 53mins MANCHESTER SHEFFIELD ROAD MIDLAND METRO

Located centrally in the UK within the The West Midlands Metro connects Midlands, Birmingham is well served by Birmingham City Centre to EAST MIDLANDS AIRPORT the motorway network including access Wolverhampton and is expected to BIRMINGHAM AIRPORT to the M5, M6, M40 and M42 resulting in benefit from £1.3 billion investment over BIRMINGHAM approximately 90% of the UK’s population the next 10 years into the extension of and businesses to be located within four existing lines across Greater Birmingham hours travel time. Typical drive times are and the Black Country which is expected as seen on the adjacent map. to add £50 million per year to the region’s Luton economy and create around 1,500 jobs. OXFORD Stansted 2hr 32mins 1hr 41mins RAIL TEWAY AIR Heathrow 1hr 49mins The £1 billion regeneration of Birmingham New Street Station together with Grand Located 9.8 miles (15.8 km) to the Gatwick DOVER Central has cemented the station’s status as southeast of Birmingham city centre, the busiest outside of London serving 43.7 Birmingham International airport ranks EXETER million passengers in 2018, 32.8% higher than as the third largest airport outside of Glasgow Central in second place. Together London, currently serving almost 13 million with Snow Hill, Moor Street and Curzon passengers annually to 143 destinations Street train stations, Birmingham sits at globally. A £500 million investment has the heart of the UK rail network with direct been outlined to make Birmingham one of access to London Euston and Marylebone, Europe’s leading regional airports and is Manchester, Bristol and Newcastle. The NEC forecast to increase passenger numbers and Birmingham International Airport can be by approximately 38% to 18 million and BIRMINGHAM reached in just 11 minutes. create up to 34,000 jobs and £2.1 billion of annual economic output by 2033. The proposed arrival of HS2 in 2026 SAN FRANCISCO PARIS will deliver a new dedicated terminus at 11hr 1hr20 GENEVA Birmingham Curzon Street, which will 1hr40 BARCELONA PHUKET significantly improve the City’s connectivity to 2hr15 11hr40 ROME London with proposed journey times of just 2hr45 49 minutes. Phase 2 of the project is outlined ISTANBUL 3hr50 MAURITIUS to connect the City to Manchester and Leeds 11hr55 further improving the City’s connectivity to the wider UK. DUBAI 7hr5 8

EXISTING METHODIST CENTRAL HALL

Central Hall Birmingham is one of the City’s most culturally significant Victorian buildings forming part of Birmingham’s city centre skyline with its iconic tower. Prominently positioned and occupying a large area of Corporation Street, the Property is distinctively characterised by its stylish red brick and terracotta frontage, mirroring that of the Victoria Law Courts and the same bricks used at the Natural History Museum in Kensington, London. Originally designed by Ewan Harper and James A. Harper in 1904, the four-storey Grade II* listed building once boasted an auditorium capable of seating 2,000 people in the main hall during its use as a Methodist place of worship. Following its conversion into a nightclub in 1991, the significant building totalling a Gross Internal Area of 90,417 sq ft (8,400 sq m) currently comprises the original large central hall and 19th Century organ with a range of subdivided rooms and service areas, together with ground floor retail shops fronting Corporation Street, Ryder Street and Dalton Street.

Source: Atellior 9

PLANNING OVERVIEW

The Property lies within the Steelhouse Conservation Area and the administrative area of Birmingham City Council. Full planning permission and listed building consent was granted by Birmingham City Council in March 2018 for an extensive and transformational redevelopment under the reference: 2017/10299/PA as follows: “Listed Building Consent for new 3 storey roof top extension; insertion of new decks, balconies, partition walls and other works; new shopfronts to nos. 204 to 206 and 224; opening up of historic fabric; removal of raked seating; part retention part removal of existing tracery windows; repointing, cleaning and repair of existing terracotta and brickwork where required and repair of some existing shopfronts in order to facilitate the proposed change of use to hotel and apart-hotel, retention of use of ground floor units for flexible retail uses and use of basement as nightclub”

Scheme Summary:

147 bedroom hotel together with extensive facilities including a ‘Gastro Hall’, a rooftop terrace bar, three meeting rooms, open communal work space, street facing café, basement multi-purpose room / nightclub and ancillary facilities.

75 unit apart-hotel

Retention of 7 retail units

Three storey roof extension and construction of an additional mezzanine level to create a new fifth, sixth and seventh floor.

The full planning application and consent are available in the secure data room and the public planning portal.

CGI of consented scheme - Source: ICA 10

CONSENTED SCHEME OVERVIEW / CGI of proposed ‘Gastro Hall’ - Source: ICA A HOTEL & HOSPITALITY DESTINATION

Central Hall Birmingham has an implementable planning permission for a new mixed use scheme totalling 150,404 sq ft (13,973 sq m). Details on the schedule of areas can be found on the dataroom. HOTEL APARTHOTEL Arranged over seven storeys, the consented scheme The scheme arranged over levels provides a 147 bedroom hotel, which will serve as a basement to five provides 75 one significant hospitality destination providing extensive bedroom aparthotel units. The open plan food and beverage (F&B) facilities including the ground floor reception and lobby creating renovation of the existing Central Hall into a high quality the entrance will be located off Ryder 4,628.5 sq ft (430 sq m) ‘Gastro Hall’ serving as the Street. Property’s focal F&B outlet from the second floor. A The aparthotel benefits from being new mezzanine on the fourth floor is proposed for a primarily a rooms revenue generating new ‘Organ’ bar overlooking the Gastro Hall whilst the business, with relatively low cost margins three storey roof extension will house the proposed and stable occupancy levels. rooftop terrace skybar which includes a VIP room in the Property’s distinctive tower. Units 208 - 210 Corporation Street will also be converted into a 1,162.5 sq ft (108 sq m) hotel café at ground floor benefiting from direct RETAIL street frontage to Corporation Street and with 2,142.0 sq Seven retail units over basement and ft (199 sq m) in the basement. ground floors will benefit from restoration Additional facilities will also include three meeting rooms of shop fronts and flexibility under Use and an open space reception with communal working Classes A1 – A5. space at ground floor as well as a basement nightclub / multi-purpose room and ancillary facilities. The Hotels’ main entrance will be located directly under the tower on Corporation Street whilst Unit 216 Corporation Street will be converted into a secondary dedicated F&B outlet with access for non-hotel visitors to the Gastro Hall, mezzanine and rooftop bars. The basement nightclub / multi-purpose room will benefit from a separate access off Dalton Street. 11

PROPOSED FLOOR PLANS

Basement Ground

First Floor Second Floor

For Indicative Purposes Only - Source: ICA 12

PROPOSED FLOOR PLANS

Third Floor Fourth Floor

Fifth Floor Sixth Floor

For Indicative Purposes Only - Source: ICA CGI of proposed rooftop terrace bar - Source: Atellior 13

PROPOSED FLOOR PLANS

Seventh Floor - (Rooftop Terrace Bar)

For Indicative Purposes Only - Source: ICA 14 15

BIRMINGHAM HOTEL MARKET

Birmingham attracted a record high of 41.8 million visitors in 2017, 1.1 million of which were overseas visitors and demonstrating a 57% growth in the last five years – more than any other major UK city aside from Edinburgh and making the City the UK’s fourth most visited destination.

This is the result of a vibrant leisure and culinary scene boasting five Michelin Over the last five years, the Birmingham hotel market Revenue Per Available Room restaurants, the most of any city outside of London, and a rich cultural reputation with Rates have grown by 43.6% outlining its buoyancy whilst even taking into account an institutions such as the City of Birmingham Symphony Orchestra and the Birmingham annualised growth rate of 4.6% of new supply per annum. Latest annualised Occupancy Royal Ballet. Visitor numbers have increased 29.7% over the last 10 years to 2017 and rates in 2018 of 76.3% and 85.2% respectively for Hotels and Aparthotels demonstrate the visitor economy contributing a record £7.1 billion in 2017, up 9.2% on the previous the strength of the local market. record set in 2016. Since 2010, only two hotels have opened in the four or five star segment, whilst Serving as the international gateway to the heart of , Birmingham International serviced apartments represent just 13.2% of the supply and with none expected in the Airport welcomed 5.3 million overseas inbound passengers of a total 13 million active pipeline over the next three years. The proposed redevelopment of Central Hall passengers in 2017, representing a 11.5% increase year on year and the busiest in the into a premium hotel and aparthotel together with high quality F&B facilities in the Airport’s 78 year history. Edgbaston Stadium is currently host to the ICC Cricket World centre of Birmingham will therefore provide a new destination offering at the quality Cup and in 2022, the City will be hosting the Commonwealth Games further driving end of the market. visitor demand and demonstrating the City’s growing appeal as an international destination.

Room Supply Vs RevPAR Birmingham Hotel STR Analysis

12,000 £80 £80 100%

£70 £70 90% 10,000 80% s £60 £60 m 70%

o 8,000 £50 R o

A £50

R 60% P

f 6,000 £40 v e o £40 50%

. R

o £30 40%

4,000 Occupancy

N £30

£20 ADR/RevPAR 30% 2,000 £20 £10 20% £10 0 £0 10% 2013 YE 2014 YE 2015 YE 2016 YE 2017 YE 2018 YE £0 0 2013 YE 2014 YE 2015 YE 2016 YE 2017 YE 2018 YE Existing Room Supply Net New Room Supply ADR RevPAR Occ Hotel Market RevPAR Serviced Apartment RevPAR 16

BIRMINGHAM OFFICE MARKET

Birmingham is positioned as one of the fastest growing tech economies in the UK and is one of the UK’s major ‘digital hubs’, with over 6,000 tech firms employing some 38,300 people. During the first quarter of 2019, Birmingham saw total commercial investment volumes of £140 million, of which £50 million was office investment, accounting for 36%. In addition to the investment market, the occupational market has remained strong, with take up of 194,014 sq ft at the end of the first quarter 2019, 48% above the same period in 2018 and 51% above the long-term quarterly average. Coupled with this, Birmingham is undergoing significant office development both through pre-lets and speculative development, with one million sq ft of new supply due in the next two years, approximately 59% of which is let prior-to-practical completion, demonstrating the strength and confidence in the city’s office market.

BIRMINGHAM RETAIL MARKET

Birmingham is one of the largest UK retail centres in the UK with principle areas including New Street, Corporation Street and the Bullring. The city has a strong department store offering and is the only city in the UK outside of London that has prime retailers Harvey Nicholas, Selfridges, Debenhams and John Lewis present. The introduction of the Grand Central scheme above New Street Train Station has had a transformative impact on the city’s retail landscape boasting occupiers including All Bar One, Camden Food Co., Hotel Chocolat, M&S and Wasabi. The continued occupational demand has resulted in a low vacancy rate of 8.1% compared to the national average of 10.2%. This has supported Prime Zone A rental growth to around £320 per sq ft with rental values on Corporation Street achieving approximately £130 per sq ft with national occupiers including EE and Urban Outfitters whilst prime yields in the city centre are achieving between 4.4% and 4.6%. 17

TENURE & GENERAL CONTACTS

For more information please contact one of our TENANCIES INFORMATION advisors below. No direct contact is to be made with the Administrators. Inspections and meetings will The Property is held freehold and registered under the DATAROOM be arranged upon request and may be subject to title number WM625749. Further and more detailed information is available in a approval. The Property is also subject to short term leases in secure dataroom. For access please contact the sole place relating to the ground floor retail units. selling agents for an NDA. RICHARD DAWES JOHN GRIFFITHS Hotels Development The passing rent for the retail totals £102,875 per +44 (0) 207 409 8106 +44 (0) 121 200 4577 annum. SDLT +44 (0) 7580 789 978 +44 (0) 7836 521 472 Full title and lease information is available in the Stamp Duty Land Tax (SDLT) will be chargeable. [email protected] [email protected] secure dataroom.

se VAT u o h 9 re Police Station a 19 o W t PHOENIX CHOW RACHEL HULL 5 19 TCB The Property is elected for VAT. 3 ers 126.5m 19 b Hotels Development m se u o h n Cha re i +44 (0) 207 409 8178 +44 (0) 121 634 8423 a EPC W Rusk E C TREET +44 (0) 7812 249 359 +44 (0) 07967 555 465 N 3 R S A o RYDE L le 5

ri 18

E d 18

3 ge 5 P Information available in the dataroom. [email protected] [email protected] as Coleridge 1 22 s 18 4 ag e Chambers 9 22 17 2 2 7 20 7 1 TCB 5 7 FRANKIE WOOD GEORGE TRIMMER 1

LB JA PROCESS & OFFERS Hotels Development

M

2 1

E 2

S +44 (0) 207 877 4778 +44 (0) 121 200 4580

Victoria Law Courts 128.3m W A Savills are pleased to invite offers by way of asset sale +44 (0) 7976 743 759 +44 (0) 7970 643 172

T

T 20

Q for the freehold interest of Central Hall Birmingham, [email protected] [email protected] to 6 20

l U 4 l

E

1 a 9 subject to the short term leasehold interests.

H E 8

o t l N a

r S 20 t

n WA 2 e Each party is to bear its own legal costs in connection C

Chy Y 19 6 T with the transaction.

EE 19 TR

T 0 S O N N S SUBJECT TO CONTRACT T O RE T L E T A D

8

9

1

9 0

The Citadel

4

o t 1

C r Important Notice: Savills, their clients and any joint agents give notice that: ow 131.1m n Cour 2 4 1. They are not authorised to make or give any representations or warranties in relation to the t property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. James Watt Street Queen Elizabeth II They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements Law Courts or representations of fact. 2. Any areas, measurements or distances are approximate. The text, PC photographs and plans are for guidance only and are not necessarily comprehensive. It should not Pitman Buildings be assumed that the property has all necessary planning, building regulation or other consents and For Indicative purposes only Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Commercial Marketing: 020 7499 8644 | July 2019