Property overview

Cheltenham House, 14-16 Temple Street, Birmingham B2 5BG 

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May 2022


Prime Birmingham city centre investment with long reversionary income and minimum RPI uplifts.   


A rare opportunity to acquire a prime mixed use asset in central Birmingham. Cheltenham House is located in a 100% prime location less than 100m from New Street station.


Cheltenham House provides 16,734 sq ft of office and leisure accommodation arranged over basement, ground and three upper floors.


Ground and basement bar & restaurant with separate entrance to self contained upper floor offices.


Single let to New World Trading Company (UK) Ltd until 9 October 2039 (17.5 years term certain).  New World Trading Company is part of Living Ventures, a leading bar and restaurant operator in the UK, trading as The Botanist.


Very low rent of £295,000 per annum which is subject to five yearly reviews to the higher of open market or RPI (with a collar and cap of 2% & 4%). Next review 11 June 2025.


Open market ERV of £442,000 based on £40.00 per sq ft for the restaurant and £19.00 per sq ft for the offices.  Potential asset management opportunity to take direct control of the upper floor office suites to achieve the reversionary potential before the next review.


We are instructed to seek offers in excess of £4,615,000 (Four Million, Six Hundred and Fifteen Thousand Pounds) for the freehold interest.


A purchase at this level reflects an attractive net yield of 6.00%. Minimum expected reversion in 2025 to 7.00% based on RPI growth but higher open market review reversion to 9.00% based on ERV.   Low capital value of £275 per sq ft.


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