Riverside Capital sells O2 Academy in Birmingham to deliver investors a 60% return

Riverside Capital is delighted to announce the sale of the 02 Academy in Birmingham earlier this month.

The property was originally acquired in a joint venture with Connection Capital in October 2012 for £2.15 million has been sold for £3.155 million.

Connection Capital clients originally committed £1.3 million of equity to the acquisition via a fully managed syndicate alongside a loan facility provided by Santander.

The sale will deliver investors an overall return of 60% and an annual IRR of 24% which far exceeds the original target return. The exit was also achieved well ahead of the target investment term of 5 years.

The opportunity to acquire the property was introduced by Riverside Capital to the Connection Capital network and was purchased in an off-market transaction.

Riverside Capital advised on the original acquisition and was responsible for executing an active asset management plan which resulted in the subsequent growth in value.

The O2 Academy is one of the best known live music establishments in Birmingham, comprising three separate venues under one roof with capacity for more than 3,800 people.

The property is let to Hospitality Holdings with a full parent company guarantee from Compass Group Plc, a FTSE 100 company. It is sublet in its entirety to Academy Music Group Limited, the UK’s leading owner and operator of live music and club venues. Upon taking occupation, AMG undertook an extensive £5.5 million refurbishment and fit out including the latest sound and visual installations.


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