AEW UK Core Property Fund (AEW) has announced the acquisition of the 3.14 acre Fiveways Entertainment Centre on Broad Street in Birmingham, for £25.1 mln (€30 mln), reflecting a purchase yield of 9.5%.
The property is let to 11 leisure tenants – Cineworld, PureGym, a casino, nightclub and seven restaurants, including Nando’s and Five Guys – and two leases to Euro Car Parks, with a combined WAULT of over 11 years to expiry.
The Broad Street area is set to continue to benefit from significant residential development, there is a pipeline of around 3,000 BtR units to be delivered in the city centre over the next three years. The £149 mln Metro extension, which is due to complete later in 2021, connecting Grand Central station with Edgbaston, will have a new tram stop directly outside the Fiveways complex.
‘We are pleased to have acquired this prime leisure asset located at the heart of Birmingham’s bustling night-time economy,’ said Edward Long, director at AEW. ‘The city has seen a renaissance over the past 10 years [..] We believe the fundamentals remain very attractive, with Birmingham’s growing young professional and student population driving demand for entertainment and residential accommodation.’
Lunson & Mitchenall acted on behalf of AEW UK Core Property Fund in the acquisition.