Mitchells & Butlers Head Office - January 2009
MREF II acquired the freehold of Mitchells & Butlers plc’s (M&B) headquarter Grade “A” specified office building, with an interlinked and separately accessed 120 bedroom hotel, from M&B on a sale and leaseback. The property was built by M&B in 2003 and is located on Fleet Street, approximately 400m to the west of Colmore Row, Birmingham’s prime office location, and 400m to the east of the International Convention Centre. The premises have been rented back to M&B on a long lease for their continued occupation.
The 95,000 sq ft office block is constructed over three main floors, with three levels of basement car park. The hotel is over four levels with an entrance, reception desk and restaurant at ground floor. The basement car park provides 278 spaces. The hotel is operated by M&B under a franchise agreement with IHG, trading as a Holiday Inn Express.
Sale
Having achieved our original business plan, MREF II sold this investment in January 2010 for £40m.
Key facts:
- Acquired in January 2009 as a sale and leaseback
- Single lease back to M&B, FTSE 250 company
- Prime Birmingham office location
- 95000 sq ft Grade A office building
- 120 bedroom hotel operated by M&B as a franchised Holiday Inn Express
- 278 car parking spaces
- Constructed in 2003
- Sold in January 2010 for £40m