Birmingham City Council is putting more assets under the hammer as it seeks to raise funds, with five properties set for auction next month.
Council's Property Portfolio Sale
The cash-strapped local authority is selling freehold interests in sites across Nechells, Sparkhill and Newtown, though all are for ground rents only. The portfolio includes retail units, office buildings, warehouse space and a yard.
These five properties will form part of more than 100 lots at Bond Wolfe's auction on Wednesday, December 10. The auction house has recent form for generating significant returns, having achieved £21 million in sales at their previous auction last month.
Notable Previous Auction Success
Among last month's standout sales was the former 4th Darlaston Scout Hut on Victoria Road in Darlaston, which sold for £157,000 despite having a guide price of just £25,000-plus. The hut, thought to have been built before the First World War, was sold on behalf of Walsall Council.
Another surprising result saw woodland at Parish Poles on Widney Lane in Solihull fetch £118,000 against a modest guide price of £5,000-plus.
Detailed Look at December's Council Lots
92 Cato Street, Nechells: This freehold interest covers industrial land and premises, subject to a lease with approximately 88 years remaining. The ground rent is £100 per annum, with fixed increases doubling every 25 years from 2037 onwards.
11 Pentos Drive, Sparkhill: A freehold commercial ground rent investment secured on a two-storey office building, warehouse and yard. The existing business will remain unaffected. The property has approximately 61 years remaining on its lease at a ground rent of £200 per annum, doubling every 25 years.
Wheeler Street Shopping Centre, Newtown: Three separate retail units are available - Unit 2 (Shop 4), Unit 3 (Shop 6) and Unit 4 (Shop 8). All are subject to 99-year leases from September 29, 1968, with ground rents of £175 per annum per unit (£350 for the combined units 3 and 4), subject to rent reviews every 25 years.
The auction presents investors with long-term ground rent opportunities across different property types in Birmingham, while providing the council with much-needed capital.
