Brockton Capital first to the Mailbox

Investor makes debut purchase for new £500m opportunity fund

Article posted: 21 Mar 2011

A former Royal Mail sorting office in Birmingham is close to being sold to investment company Brockton Capital.

The London-based investor and asset manager beat off competition from Chester Properties and London & Stamford to deliver the winning bid for the Mailbox.

The purchase will be a debut acquisition for Brockton’s new £500m opportunity fund which is thought to have bid in excess of the £118m asking price, reflecting a yield of around 7.5%.

The 1.5m sq ft property was purchased in 1998 for £4m. The residential and hotel component of the scheme was sold in 2000. Brockton will be purchasing the remaining 640,000 sq ft of retail, restaurants and office space at the iconic Birmingham property, giving them an annual income of around £9.4m.

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Posted by Jules