Property investment company Riverside Capital has sold the 02 Academy in central Birmingham to an unnamed private investor for £3.15 million, representing an initial yield of 6.9%.
The Bristol Street property is currently let to the Academy Music Group (AMG) which is the operator of the live music and club venue where artists such as Clean Bandit and Jessie J have performed. AMG currently has a 19 year unexpired lease producing an income of around £230,000 a year.
Alex Titheridge, of Colliers International – who acted on behalf of Riverside – commented: “As investors continue to look outside of the capital for better yield opportunities, Birmingham has emerged as a real hot spot for investment activity- with its sophisticated infrastructure programme setting it apart from other regional cities”.
Mr Titheridge also said that the leisure sector is in high demand from investors, with both institutional and non-institutional investors showing interest in accessing this particular market.
He added these factors, combined with the “secure income stream and revisionary prospects”, made the property an “attractive opportunity” to potential investors.
Story: Chris Grigorovsky