The subject property is located principally over 4 levels within the Cube, an iconic building designed by award-winning architect Ken Shuttleworth of Make, whose portfolio also includes the Gherkin, concluding the final stage of the renowned Mailbox development, forming one of Birmingham’s premier retail and leisure destinations.
Completed in 2010, The Cube has become a Birmingham landmark, comprising a striking 25 storey development that, in addition to the hotel include other bars, restaurants and leisure uses, including a 10 pin bowling centre, 244 residential apartments, extensive underground car parking and 112,000 sq. ft of offices.
Occupiers in The Cube include Highways England, the Solicitors Regulation Authority and IBI Group. Other nearby occupiers within the adjacent Mailbox include high end lifestyle and fashion retailers such as Paul Smith, Boss, Harvey Nicholls and Emporio Armani, along with complimenting bars and restaurants such as Gas Street Social, Chez Mal, Harvey Nicholls Bar and The Mayan.
This scheme also boasts an Everyman multiscreen cinema, two further hotels, including AC Hotels by Marriott and Malmaison and is home to BBC Birmingham.
Location
Birmingham, in the West Midlands, is the UK's second largest city, located about 120 miles northwest of London, 90 miles northeast of Bristol, 50 miles southwest of Nottingham, and 85 miles south of Manchester.
With a strong economy outside London, it hosts major companies like Aviva, Barclays, Capita, Deloitte, Direct Line, EY, HS2, HSBC, Network Rail, PwC, RBS, and Zurich.
The city hosts numerous events, including the 2022 Commonwealth Games, Crufts, Gay Pride, Chinese New Year, St. Patrick's Day Parade, CMS, Edgbaston Cricket Ground, Birmingham Beer Festival, and the Jazz Festival.
Birmingham has excellent transport links with the M5, M6, M40, and M42 motorways. It has three railway stations—Birmingham New Street, Birmingham Moor Street, and Snow Hill—providing frequent high-speed connections to London Euston (1 hour 15 minutes) and other major UK cities like Manchester, Liverpool, Nottingham, and Bristol.
Birmingham New Street is the busiest station outside London and is a 10-minute walk from The Cube. Curzon Street Station is under construction, expected to open between 2029 and 2033, linking eight of Britain’s largest cities and reducing journey times and congestion.
Birmingham International Airport is easily accessible, with a journey time of about 10 minutes from Birmingham New Street Station.
Accommodation
The subject property offers a unique multi-faceted business that comprises a landmark rooftop bar and restaurant, with private dining and a 52 bedroom boutique hotel. These operational entities are located across Levels 7, 23, 24 & 25 within The Cube.
The Cube benefits from multiple external entrances that include direct access from two levels of the Mailbox, and from Commercial Street to the rear. Each operational aspect of the business in turn communicates internally to provide fluid and convenient guest movement.
A hotel reception and lift lobby is accessed directly off Commercial Street or internally from The Cube at Level 7. This provides dedicated lift access between Levels 23, 24 and 25.
Floor plans are available in the data room.
LEVEL 25
Marco Pierre White Steakhouse Bar & Grill, Laurent-Perrier Terrace,Champagne Bar and Panoramic Private Dining Room.
Occupying the entirety of Level 25, the space enjoys 360 degree views across the city, the accommodation has been configured to provide restaurant, bars, private dining/events space and a stunning sun terrace.
Merging together, Level 25 Bar and Marco Pierre White Steakhouse Bar & Grill occupy a fully furnished open plan bar and restaurant space, with spectacular views across the city, that together provide approximately 180 covers.
The bar and restaurant areas interconnect with the Laurent-Perrier Terrace, a heated terrace with retractable roof, which can accommodate approximately 80 seated guests and 160 for a standing reception.
There is a cocktail bar area with c.36 covers off the main entrance lobby, again with stunning views. This area can be used for private dining or smallconference area.
The Laurent-Perrier Champagne Bar is a dual aspect events area, with bar and dance floor, able to accommodate circa 60 guests for dining or 120 at a standing reception.
In addition, there is a dual aspect private dining room, again with stunning panoramic views across the city. This is also used for small events and as ameeting room, with a large boardroom table for 22 guests.
LEVEL 23 (Part) + 24
Operating as an unbranded Boutique Hotel, the two levels together provide 52 good quality bedrooms that were last refurbished in 2019 (when the hotel operated under IHG's Indigo brand), being well equipped en-suite letting bedrooms.
Standard - 40
Feature - 6
Balcony - 4
Accessible - 2
Total - 52
Terms
Tenure - The subject property is held under two separate long leasehold interests albeit each on broadly coterminous terms.
Term - 125 years from and including 22nd December 2010 (approximately 111 years unexpired)
Rent - Peppercorn rent without review
Repair/Insurance - Effectively full repairing and insuring via service charge
Alienation - Assignment of the whold is permitted having first obtained the landlord's prior written consent. Underletting of the whole is permitted without the landlord's consent. Underletting of a Permitted Part is permitted having first obtained the landlord's prior written consent.
Permitted Uses - In relation to Level 25, as a restaurant/brasserie with ancillary bar area within Class 3A, use of up to 50% of the total net internal floor area as hotel bedrooms or foa ny other use with the landlord's prior written consent (such consent not to be unreasonably withheld or delayed having due regard to the principals of good estate management). In relation to Levels 23 and 24, as a good quality hotel and connected reception area within Class C1, as serviced apartments or residential accommodation or any other use with landlord's prior written consent (such consent not to be unreasonably withheld or delayed having due regard to the principals of good estate management).
Service Charge - Under the terms of the lease a service charge is payable, which relates to the wider Cube scheme, but is apportioned to tenants based upon floor space occupied. The service charge year runs from 1st January to 31st December. Historic service charge information and the budget for the current year commencing on 1st January 2024 is available within the data room for review.
Services - At the time of our inspection, the property was connected to mains water, gasand electricity.
Fixtures & Fittings - The majority of F+F are included in the sale - an inventory is included in the data room
Energy Performance Certificate (EPC) - The property has an energy performance certificate rating of: Level 23 & 24 (Hotel): C-65 Level 25 (Restaurant): B-45
Fire Risk Assessment - A copy of the up-to-date fire risk assessment is available within the data room.
Marco Pierre White Franchise Agreement - The food and beverage aspect of the business is currently operated under a franchise agreement from Black & White Hospitality Limited as a Marco Pierre White branded restaurant. Principal terms of the franchise agreements are outlined within the data room. An opportunity is available to enter into a new commercial franchise agreement directly with Black & White Hospitality Limited.
Business Rates - The business rates are payable to Birmingham Council. We understand that the rateable value for the year commencing 1st April 2024 is:
Hotel and premises: £135,000
Level 25 restaurant and bar area: £340,000
Planning - We understand that the property has valid consent for its current use. The property is not a listed building nor is it situated within a conservation area.
Licences - We understand that the business is currently operating with the benefit of apremises licence and a wedding licence.
Asking Price / Sales Structure - Offers are invited in the region of £12,000,000 for the long leasehold interest in the property and business, which is being sold by the Joint Administrators of MSHA Global Investments Limited on a going concern basis.
Specification
- Rare opportunity to acquire a prime hotel in a major provincial city market located in an iconic landmark mixed commercial and residential building.
- Multi-faceted trading business with extensive facilities.
- Unbranded Boutique Hotel with 52 keys enjoying extensive city views inc 10 feature and balcony rooms.
- Marco Pierre White branded restaurant (c.180 covers)
- Additional dining and bar facilities (60 covers/120 reception) with extensive terrace area (80 covers/160 reception) and cocktail lounge (36 covers)
- Private dining/Boardroom at Level 25 (22 covers)
- Well-presented and invested asset
- Total Floor area approaching 37,000 sq ft over 4 floors
- Long Leasehold tenure in two coterminous leases with c.111 years unexpired. Peppercorn rent
Typical Room Amenities
- Individually controlled air conditioning
- En suite bathroom
- Work desk
- High speed interenet access
- HD TV
- Cable/Satellite TV
- Iron/iron board
- Premium channels available
- Hairdryer
- In-room video checkout
- Coffee/tea maker
- Established business with potential brand, asset/operational and management opportunities