Second Time Lucky For £200M Mailbox Sale?
M7 , the investor better known for its prowess in the industrial sector, is in pole position to acquire Brockton Capital’s £200M Mailbox in Birmingham, according to reports.
Approached by Bisnow, M7 declined to comment on a report by CoStar that it is in talks to acquire the building from Brockton and its partner Milligan.
The sale, if confirmed, means second time lucky for the vendors, and at a lower price. In April it shelved a reported £235M sale process which began in July 2018. At the time Brockton Managing Director David Marks blamed the Brexit crisis for stifling demand for large regional assets.
A sale at this price would still represent a big profit for Brockton — it bought the scheme for £127M in 2011.
The 700K SF retail-led scheme includes 200K SF of offices, 85K SF of restaurants and a 45K SF Harvey Nichols department store. The rest of the scheme is shops and apartments. It is 97% let with an average 14 year unexpired lease. CBRE is advising the vendors.
M7 has stepped up its interest in the West Midlands. In June its development arm secured a loan from Merseyside Pension Fund to develop a 780K SF mixed-use development at the Green, Solihull. The 47-acre brownfield site will provide 145K SF of commercial space, 570 homes and up to five car dealerships, including a prestige showroom for Aston Martin.
