Lambert Smith Hampton (LSH) and joint agent Fleurets have been appointed to find an investor purchaser for the Hotel Indigo, Marco Pierre White Steakhouse Bar & Grill, the Club and Spa, Bardolino Pizzeria and Canalside Ballroom, located at The Cube in Birmingham on a sale and leaseback, or sale and manage back basis.
The asset is currently trading as a multi-faceted hotel, hospitality and leisure business spanning 63,000 sq ft of space over six floors, with benefit of three coterminous long leases with c.115 years unexpired and a Peppercorn rent.
Hotel Indigo on the site comprises 52 bedrooms plus two Marco Pierre White branded restaurants as well as additional dining and bar facilities with an extensive terrace area and self-contained canal-side events venue.
The independently branded Club and Spa has its own reception, 11m indoor swimming pool, saunas, gym, four studios, 16 treatment rooms, changing rooms and extends to circa 19,000 sq ft.
The Health Club benefitted from circa £2.5m investment in the last 24 months.
The business, which has been trading well post the easing of the lockdown restrictions, is being sold as the current owners EIS funded scheme has reached maturity.
Given this, the existing operators would like to find an investment partner moving forward in order that they can continue to drive the business forward, however the owners will also consider interest from credible buyers on a going concern sale basis.
Offers in the region of £13.5m are invited.
Hugh Anderson, director of Hotels and Leisure at LSH, said: “This is exceptionally rare and unique opportunity to acquire a prime hotel in a major provincial city that’s located in an iconic mixed-use building.
“On a going concern basis, the significant capital expenditure made on the asset over recent years and the refurbished spa presents a considerable upside opportunity, once trading conditions normalise – with expectations that trading will quickly return to historic levels or above.”