The trust behind the Birmingham Hippodrome theatre has bought a neighbouring office block with plans to offer vacant space to creative businesses.
Paloma Capital has sold the Southside Building at 31 Hurst Street to Birmingham Hippodrome Theatre Trust for £8.24m.
The 50,000 sq ft building is let to 24 tenants – 17 office occupiers and seven retail tenants. It has a WAULT of 7.4 years to expiry and 5.2 years to break, with rental income of £768,550 per annum. Spanning 11-storeys, the building has undergone a £6.3m refurbishment programme over the past three years.
Jon Gilchrist, artistic director and chief executive of Birmingham Hippodrome Theatre Trust, said: “We look forward to working with the existing tenants and growing more work opportunities for the city. We will be exploring how we can utilise vacant units for use by artists and cultural organisations in the city.”
The investment has been supported by a business loan agreement with the West Midlands Combined Authority and Frontier Development Capital. West Midlands mayor Andy Street said: “I am pleased that we have been able to step in and help facilitate this acquisition by the Hippodrome – a Birmingham cultural institution.”
ACRE acted for the vendor, Paloma Capital, and CBRE acted for BHTT.
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