Aviva Investors is selling the Broadway Plaza leisure scheme in Birmingham for £45m, a 7.36% yield, as part of its disposal programme.
It has instructed Knight Frank to market the scheme, which is being offered on a freehold basis.
The 270,000 sq ft Broadway Plaza is anchored by an Odeon cinema and includes a Travelodge Hotel, Broadway Casino and a Hollywood Bowl bowling alley. It generates around £3.6m pa in rental income.
Originally developed in 2003, it also includes a Nuffield Health gym, a 1,400-space basement car park and 114 flats leased by Danesdale Land on a 125-year lease.
The car park and Odeon cinema are currently being refurbished and there is scope to increase the rents on other units following their refurbishment.
In July last year Aviva began to accelerate its strategy to dispose of non-core assets and put around £400m of assets up for sale as part of a wider plan to dispose of £1.5bn of property. The strategy is part of chief executive Ed Casal’s aim to increase the fund’s average asset size.
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