Issue date: 5th April 2011 Brockton Capital Acquires The Mailbox in Birmingham Brockton Capital LLP, on behalf of Brockton Capital Fund II LP, is pleased to announce that it has agreed to acquire The Mailbox in Birmingham city centre from Birmingham Mailbox Limited for £127.1m. Brockton Capital will be partnering in the transaction with Milligan, who will be co‐ investing alongside Brockton Capital. In one of the largest property deals to be transacted in the UK this year, the deal comprises 640,980 sq ft of lettable accommodation including office, retail and restaurant units, and a 686 space public car park across a strategic site of 4.8 acres in Birmingham’s city centre. Current tenants include BBC, Network Rail, Harvey Nichols, Emporio Armani and Thomas Pink. The estate also includes 144 residential apartments together with 165 private dedicated car spaces, two hotels (279 bedrooms), all let on long ground leases. The Mailbox is well located on the west side of the Birmingham’s traditional core, mid‐way between Bullring shopping centre and Brindleyplace. The Mailbox is situated around 300 metres from Birmingham New Street Station, which is currently undergoing a £600m transformation, including the recently announced 250,000 sq ft John Lewis department store, scheduled to open in 2014. The new John Lewis store, as well as the new entrances to the Foreign Office Architects‐designed New Street Station, will re‐orientate the station and its associated footfall towards The Mailbox. David Zimmermann, a Partner of Brockton Capital, commented: “Brockton Capital is excited to have invested into The Mailbox, one of the city’s most iconic buildings. The innovative work of Birmingham Mailbox Limited in converting the giant former sorting office into a thriving mix of offices, restaurants, shops, hotels and apartments has been transformational for the centre of Birmingham. Contd/…
2/… “Brockton Capital always attempts to view a project’s success in terms of its wider historical and economic context. The completion of the International Convention Centre, Symphony Hall and the National Indoor Arena (all in 1991), Victoria Square in 1993, Brindleyplace in 1995, The Mailbox in 2001, the new Bullring shopping centre in 2003, The Cube in 2011, as well as the on‐going work at the new Library of Birmingham, the redevelopment of New Street Station, the recently announced John Lewis department store, as well as numerous other projects, have all added up to a total civic rebuilding of the city’s core. “Brockton Capital and Milligan will be looking to build on Birmingham Mailbox Limited’s good work at The Mailbox. We have earmarked substantial funds to enhance the building in order to further improve the public realm, bring in new businesses, shops, restaurants and other leisure uses to the asset and to further cement its reputation as one of the best places in the city to work, shop, eat and relax. "We look forward to working closely with the city’s residents, businesses, retailers, visitors, planners and councillors in order to help bring this about." The Mailbox was the first venture for Alan Chatham and Mark Billingham when they joined forces in 1998 and since opening in 2001, it has been an iconic landmark for Birmingham. Commenting on the sale, Mark Billingham said "Almost thirteen years to the day since we bought the old Royal Mail sorting office to convert it into The Mailbox, we are pleased to announce this sale to Brockton Capital. It has been a thoroughly enjoyable experience and we are now looking forward to having the time to move forward with our Chatham Billingham business and concentrating on our other projects including Land Fund, Post and Mail and other investment opportunities. We will be remaining in our offices in The Mailbox." Contd/…
Brockton Capital LLP was advised on the acquisition by Jones Lang LaSalle (property), Shelley Sandzer (leisure agents), Gleeds (construction), BDO LLP (tax and capital allowances) and Nabarro LLP (legals). The vendor was advised by CB Richard Ellis and GVA (property) and Eversheds (legals). ‐Ends ‐ Enquiries: Brockton Capital LLP Tel: 020 7220 2500 David Zimmermann Tony Edgley David Marks Editors Notes: Background on Brockton Capital LLP: Brockton Capital is a UK‐focused real estate fund that invests in direct property, asset‐backed operating businesses and real estate securities. Brockton Capital Fund II L.P. was raised in September 2010 and has £500m of equity under discretionary management. Brockton Capital Fund I L.P (Brockton Capital’s first fund, which was raised in 2006) invested in the office, residential, serviced apartment, pub and healthcare sectors. For more information please see www.brocktoncapital.com Background on Milligan: Milligan is an innovative retail developer who specialises in creating places where people are inspired to shop. Over the last 9 years Milligan has developed from scratch and repositioned existing assets in Manchester, Liverpool, Barcelona and Lisbon. In addition, MIlligan is responsible for driving the non‐aeronautical revenues at London City Airport and has a key advisory role regarding non‐aeronautical revenues at Manchester Airport. For more information please see www.milliganretail.com contd/…
4/… Background on The Mailbox: The Mailbox is the UK’s largest mixed use building, totalling over 1.0 million sq ft of space, comprising: • 200,000 sq ft of Grade A offices leased to the BBC, Network Rail, Virgin Telewest and Associated Architects • 36 retail units totalling 150,000 sq ft leased to luxury retailers such as Harvey Nichols, Emporio Armani, Hugo Boss, LK Bennett, All Saints, Jaeger, Thomas Pink, Gieves & Hawkes and Bang & Olufsen • 18 restaurants totalling 70,000 sq ft including operators such as Cote, Nandos, Shogun Teppan Yaki, Pizza Express, Café Rouge, Miller & Carter’s Steakhouse, Strada as well as a number of other high quality independent restaurants. Most of the restaurants and bars in The Mailbox overlook the water’s edge on Birmingham’s Canal, just a short walk along the towpath from the International Convention Centre (ICC), the National Indoor Arena and Brindleyplace • around 700 public car parking spaces in what is universally regarded as the best designed and operated car park in the city In addition, The Mailbox comprises further high quality uses which, whilst now sold off to other investors and residents, are integral to the critical mass of the wider 1.0 million sq ft complex, including: • a 189 room Malmaison Hotel • a 90 room Ramada Hotel • 144 rooftop apartments with a private resident’s car park For more information please see: www.mailboxlife.com
