The property was acquired as part of wider portfolio and occupied by McDonalds.
At the time of purchase the tenure was leasehold and the freehold interest has subsequently been acquired.
In addition, at the time of acquisition the McDonalds lease had some three years remaining and was some 100% over-rented with a passing rent of £163,000pa.
A sale of the McDonalds holding in Park Street, Walsall has realised a 25% uplift on value from the purchase price.
The property comprises two prime office buildings totalling 87,000 sq ft on the premier business park on the Island and were constructed in 2005. One of the buildings Dorey Court was subject to an over-riding lease to a Major Bank. Approximately half the build was sub-let.
A 12 month £2m comprehensive refurbishment programme including new reception, washrooms, passenger lifts and offices is almost complete.
We incorporated a redundant entrance into a poorly configured retail unit and by regularising the dimensions pre-let the new unit to a Bank on a 15 year lease. This in effect rentalised at £130 ITZA an area which was previously valued at nothing.
Simultaneously, much of the redundant basement was then leased to the Bank for staff facilities and archive storage.
At 61-65 New Street, Birmingham we are now underway on the internal refurbishment to include modernisation of the reception, redecoration of all common areas & a thorough upgrade to the washrooms.