Crowne Plaza Hotel, Holliday Street, Birmingham, B1 1HH
Franck-Steier Price has recently completed the sale of a prime hotel ground rent on behalf of Tencent Holdings.
The property is prominently located on at the front of Arena Central in Birmingham City Centre, overlooking the city’s inner ring road. The property comprises a 312 bed hotel with restaurant, bar, fitness centre and substantial conferencing facilities.
The property is let to Centre Island Birmingham Ltd (t/a Crowne Plaza) for a further 242 years. The current rent is £64,451 per annum which is part reviewable 28 yearly to 20% of the open market value and part 5 yearly to uncapped RPI.
The purchase price of £1,412,000 reflected a net initial yield of 4.31%, assuming costs of purchase of 5.80%.
The purchaser was a private investor, represented by Cooper Rose.