The home of the O2 Academy in Birmingham has been sold for £3.15 million.

The building in Bristol Street, officially called 16-18 Horsefair, has been acquired by a private buyer from property investment company Riverside Capital.

16-18 Horsefair is let to O2 operator Academy Music Group and has 19 years to go on its lease, providing an annual income of £230,000. The deal represented a net initial yield of 6.9 per cent.

Property consultancy Colliers International acted on behalf of the vendor.

Alex Titheridge, director in its national investment team, said: "As investors continue to look outside of the capital for better yield opportunities, Birmingham has emerged as a real hot spot for investment activity with its sophisticated infrastructure programme setting it apart from other regional cities.

"At the same time, investor demand for the leisure sector is stronger than ever and we are seeing a large amount of institutional and non-institutional investors seeking access to the leisure marketplace.

"These two aspects, combined with the secure income stream and reversionary prospects, meant that 16-18 Horsefair proved a very attractive opportunity for prospective investors."

Academy Music Group also operates O2 Academy venues in London, Bristol, Glasgow and Sheffield among others.

The long leasehold for the property was held by Costree Properties for a term of 999 years from October 23, 2012.