Land At Holloway Head, Birmingham, B1 1NG

Property description

This is a rare freehold ground rent investment opportunity at Holloway Head, Birmingham -a long-dated, RPI-linked income stream secured against a prime city centre development site in one of the UK's most active regeneration corridors.

The investment produces an immediate net initial yield of 4.38% with compelling reversionary potential at the first rent review in August 2028, when the income is anticipated to rise materially in line with cumulative RPI growth since lease commencement in 2018.

The lease runs for 150 years from 31 August 2018, providing an unexpired term of approximately 142 years. Rent reviews are upward-only, RPI-indexed every ten years -the hallmark characteristics of an index-linked institutional investment. This type of opportunity is rarely available in the open market.

The permitted development scheme provides for up to 487 residential units, with the tenant covenanted to complete the scheme within the agreed development period. Additional income protections include a penalty rent uplift of £150,000 per annum if development is not completed on time, and an escalator of £300 per annum per unit constructed above 487.

Viewing arrangements

For further information or to arrange a discussion, please contact the sole agents Siddall Jones Commercial Property Consultancy.

T: 0121 638 0500
E: info@siddalljones.com
W: www.siddalljones.com

Interested parties should register their interest with Siddall Jones to receive the full information pack, including a copy of the engrossed lease, official title copies and planning information.

Offers are invited in excess of £1,300,000 for the freehold interest, reflecting a Net Initial Yield of 4.38% after purchaser's acquisition costs, assuming standard purchaser's costs of approximately 5.4%.