BUILDINGS New Street & Stephenson Place, Birmingham, B2 4PY
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BUILDINGS New Street & Stephenson Place, Birmingham, B2 4PY Mixed-use Trophy Asset in the Heart of Birmingham City Centre New Street & Stephenson Place, Birmingham, B2 4PY 02 Investment Summary • Birmingham is the regional centre for the West Midlands and is firmly established as the UK’s second city with a population of over 1.1m (2019). • Birmingham is a city with ambitious growth plans. Billions of pounds have been invested under the Big City Plan (2010) and the city is now reaffirming its strategy with the launch of Our Future City Plan (2021). • A centrally located, mixed-use hotel and retail investment. • Strategically positioned at the entrance to Grand Central train station and at the junction of New Street, Corporation Street and Stephenson Place, making it one of the highest footfall locations in Birmingham. • Tenants include HSBC, Premier Inn, McDonald’s and Greggs. • Five tenants with 82% of income secured to ‘5A1 minimum risk’ covenants. • WAULT of 8.62 years to expiry and 7.14 years to earliest breaks. • Asset management opportunities available to drive value. • We are instructed to seek offers in excess of £32,000,000 (Thirty Two Million Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect the following yield profile (after allowing for standard purchaser’s costs of 6.77%). 6.12% NIY Rising to 6.26% in 2023 5.96% NEY 5.95% NRY 4.65% NIY on Hotel 7.06% NIY on Retail Based on current CPI forecasts and our opinion of ERV. New Street & Stephenson Place, Birmingham, B2 4PY 03 An international city at the heart of the UK Key Statistics Birmingham is the regional centre for Birmingham is a truly international city. It is at the heart the West Midlands and is firmly of the UK’s road and rail network and has one of the country’s busiest international airports, which handled established as the UK’s second city with over 12.6m passengers in 2019. Billions of pounds have a population of 1,149,000 (2019), making been spent on infrastructure projects since the launch of The UK’s second A population of largest economy after 1.149 million making it England’s it the largest regional centre in England the city’s Big City Plan, with further investment planned London worth £110 billion largest city outside London by a significant margin. for the airport, roads and most significantly into the HS2 rail network, as the city continues to grow under the direction of Our Future City Plan (January 2021). Home to 110,000 companies and Hosting the 2022 Commonwealth over 715,000 employees, the largest Games – the UK’s largest concentration outside of London sporting event since the 2012 Olympics The UK’s top regional city Home to for start-up creation 5 universities 6 Michelin Star for the 5th consecutive year and 82,000 students restaurants Grand Central and New Street Station redeveloped 42 million HS2 49 minute at a cost of £750m tourists per year train journey to London New Street & Stephenson Place, Birmingham, B2 4PY 04 Connectivity ROAD MIDLAND METRO Birmingham is in the heart of England’s motorway The Midland Metro has proven popular with the city core network linking the M1, M5, M6, M40 and M42. 90% of now linked to the whole network. The Grand Central stop the country’s population can be accessed within 4 hours is located on Stephenson Street, just 100 metres from from Birmingham city centre. Exchange Buildings. Since the extension through the city core in 2019, passenger numbers are up significantly and M1 J.18 38 miles expected to be boosted further once the latest extension, M5 J.1 5 miles running west to Edgbaston, completes in 2021. M6 J.6 3 miles YEAR PASSENGER JOURNEYS M40 J.3(A) 14 miles 2015/2016 4.8m M42 J.3 11 miles 2016/2017 6.2m 2017/2018 5.7m 2018/2019 8.3m RAIL 2019/2020 8.0m Birmingham has three main train stations in the city centre: Moor Street, Snow Hill and New Street, all HS2 with regular services across the country. Birmingham New Street is the busiest interchange station in the UK The UK’s largest infrastructure project will outside of London with a train leaving the station every consolidate Birmingham as the epicentre 37 seconds and more than 140,000 people passing of the country. Phase I will deliver a new through every day. high speed rail line reducing journey times from Birmingham to London to Birmingham New Street station underwent a £750m 49 minutes. Phase II will go on to link redevelopment in 2015, increasing the capacity of the Birmingham to the northern conurbations station from 32 million passengers per year to 52 million. of Leeds and Manchester. London (Euston) 1hr 20mins HS2 will become the world’s most advanced passenger railway system. It is Manchester 1hr 28mins AIR anticipated that around 25,000 direct jobs Leeds 1hr 46mins Birmingham Airport is located approximately 7 miles south east of Birmingham City Centre but is accessed in less will be created in the region as well as an Edinburgh 4hrs than 10 minutes via Birmingham New Street station. additional 100,000 in the wider network. New Street & Stephenson Place, Birmingham, B2 4PY 05 Catchment & Demographics Birmingham is firmly established as England’s second city with a population of 1,149,000 (2019). Furthermore, this population is forecast to grow +0.51% pa over the period 2019-2024, 19% higher than the UK average. The city has been ranked the number one English regional city for quality of life for the past six years running (Mercer Quality of Life Survey 2019) and boasts one of the fastest growing demographic bases in the country. Birmingham pulls from a geographic area significantly in excess of its regional location and attracts additional spending from well beyond its primary catchment area, particularly from affluent satellite towns like Solihull and Sutton Coldfield to the south-east and north-east respectively. The population is boosted by students; there are over 80,000 students, studying at the five universities in the city. Derby Stafford Leicester Wolverhampton Sutton Coldfield BIRMINGHAM Solihull Coventry Dudley Leamington Spa Northampton Worcester Catchments Primary Evesham Secondary Tertiary Quarternary Centre New Street & Stephenson Place, Birmingham, B2 4PY 06 Tourism A growing part of the city’s economy is tourism. Birmingham received a record 42.8m visitors in 2018 and the wider West Midlands region a total of 131 million visitors. The West Midlands Combined Authority visitor economy was worth a record £13.1 billion in 2019, up 3.6% on the previous year. Among other draws, the city is home to the National Sea Life Centre, Symphony Hall with its world famous acoustics, Birmingham Repertory Theatre, the National Exhibition Centre and International Convention Centre, the iconic Library of Birmingham and six Michelin starred restaurants, the most in any UK city outside of London. The city is a key conference/convention destination with over 40% of the UK’s conference and exhibition business taking place here. Business in Birmingham Birmingham is England’s second city in terms of both contribution to national GDP and population. It has a regional economy worth around £110 billion. The city has the largest regional economy in the UK and is home to 110,000 businesses, the highest concentration outside of London. Major businesses located within Birmingham include: Lloyds, HSBC, Barclays, DLA Piper, Shoosmiths, Pinsent Masons, Eversheds Sutherland, KPMG, EY, PWC, Deloitte, Atkins, WSP, Deutsche Bank, Network Rail, HM Revenue & Customs, Birmingham City Council and the BBC. Driving Birmingham’s position as the top regional centre for business is a large, talented work pool, with 715,000 workers, and 20 universities within a one hour drive. HSBC’s UK Headquarters - 1 Centenary Square New Street & Stephenson Place, Birmingham, B2 4PY 07 Retailing in Birmingham Largest retail centre in the UK, Largest regional shopping Largest volume of available retail outside London population in England spend in England, outside London Birmingham has a fantastic retail offer and is the largest retail centre outside London with an estimated 3,380,000 sq ft of retail floorspace. Total Retail Expenditure is estimated at £6.179bn Bullring is a Super Regional shopping centre providing annually, ranking second highest in the UK. The city 1.3 million sq ft over four levels and is anchored by centre is split between the retail and office districts Selfridges – one of only four Selfridges stores nationally. and as such, the retail accommodation is concentrated The scheme provides the mass market and premium in the southern core. retail offers, along with a significant catering provision The primary retail pitches in Birmingham are New Street, in 25 restaurants. High Street and the combined Bullring & Grand Central Grand Central is a new 500,000 sq ft development, shopping centres. which coincided with the significant remodelling of New Street is the principal pedestrianised East-West Birmingham New Street station. The scheme has axis through Birmingham’s prime shopping circuit and brought a host of restaurants and premium retailers is one of the City’s busiest ‘on street’ shopping areas. and seamlessly links with the traditional retail circuit The majority of the UK’s high street banks have flagship via the pedestrianised Stephenson Place, which abuts branches on the street and are joined by some of the the subject property. UK’s best-known retailers, including: Apple, JD Sports, Birmingham also has a wealth of boutique arcades H&M and soon Sports Direct. and precincts, including Piccadilly Arcade, Great Western High Street intersects New Street at its eastern end Arcade and Burlington Arcade, which further add and recently welcomed Primark, who acquired the to the well-established city centre destination.