Mailbox posts for sale sign
M7 has appointed JLL to put Birmingham’s Mailbox up for sale with a £120m-plus price tag.
The 700,000 sq ft property was the only asset in Mailbox REIT, which was forced to delist from the now-defunct IPSX last month.
The asking price is more than 25% lower than the £162.5m valuation given by Mailbox REIT’s valuers in June and £70m less than M7 paid for the for the asset in late 2019.
M7 has appointed JLL to put Birmingham’s Mailbox up for sale with a £120m-plus price tag.
The 700,000 sq ft property was the only asset in Mailbox REIT, which was forced to delist from the now-defunct IPSX last month.
The asking price is more than 25% lower than the £162.5m valuation given by Mailbox REIT’s valuers in June and £70m less than M7 paid for the for the asset in late 2019.
The owners of the Mailbox have been seeking to find ways to repay the £108.5m of debt secured against the property since the beginning of the year after defaulting on the loan.
In September, it went out looking to raise £30m to cure the default and last month said it had failed to find a “full cure” for the default and was “continuing to progress a number of avenues to resolve the issue, including a potential refinancing”. A sale now appears to have been selected as that chosen avenue.
Deutsche Bank holds the loan against the building.
The Mailbox is let to a variety of retail and office tenants, with the BBC being its largest tenant by income, paying £2.1m per annum in rent – some 23% of the total income on the building. BBC announced its intention to move out of the building when its lease expires in 2026 last summer. It is relocating to the former Typhoo Tea Factory in the city’s Digbeth area.
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Image from Mailbox REIT
