Specialist investment management firm Kames Capital is toasting the acquisition of two of Birmingham’s most popular nightspots.
Kames has purchased the Mechu and Après nightclubs on Summer Row from Town & Country Inns as a means of boosting its West Midlands portfolio. In total, the deal was worth £6.9 million after the company’s representatives Savills successfully concluded the negotiations.
Along with the two properties, Kames Capital has gained the office space above both properties and a second Après venue on Bird Street in Lichfield. However, the deal does not include Fleet Street Kitchen, Town & Country Inns’ third property on Summer Row.
Director of investment at Savills, Ned Jones, believes the deal will prove profitable for the property investment firm.
He says; “These assets are in prime Midlands leisure locations and offer a good return from one of the region’s most respected and long standing independent chains, making them a strong addition to our client’s portfolio.”
As part of the deal, Kames Capital has agreed to lease back the properties to Town & Country Inns in order to allow existing management structures to remain in place. This means Town & Country Inns will continue their tenancies in both of the properties for the next 25 years – the agreed lease period.
In total, the acquisition has given Kames Capital control over a mixed leisure and office space of 31,217 sq ft which is already significantly let thanks to the pre-existing deal.
However, while this assures a steady return, it also provides scope for the firm to invest in the office space above the nightspots and boost rental income thanks to the high demand for top quality office space in Birmingham at present.
Kames Capital has two UK offices, in London and in Edinburgh, and currently manages assets worth around £52 billion.
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