SREIT buys mixed-use in Manchester
Schroder REIT has bought St Ann’s House in Manchester, for £14.7m.
The deal for the freehold to the 52,000 sq ft building reflects a net initial yield of 7.8%, a reversionary yield of 9.1% and a low average capital value of £283 per sq ft.
The mixed-use building comprises 40,000 sq ft of offices, let to four tenants including Igneus UK and the Ecclesiastical Insurance Office. Watches of Switzerland, Russel & Bromley and Space NK occupy the shops on the ground floor, with two units unlet.
Schroder REIT has bought St Ann’s House in Manchester, for £14.7m.
The deal for the freehold to the 52,000 sq ft building reflects a net initial yield of 7.8%, a reversionary yield of 9.1% and a low average capital value of £283 per sq ft.
The mixed-use building comprises 40,000 sq ft of offices, let to four tenants including Igneus UK and the Ecclesiastical Insurance Office. Watches of Switzerland, Russel & Bromley and Space NK occupy the shops on the ground floor, with two units unlet.
The property, on St Ann’s Square close to the prime retail core, generates £1.22m headline rent pa, but has an estimated rental value of £1.33m.
Nick Montgomery, SREIT’s fund manager, said: “This acquisition is line with the strategy to selectively acquire income-producing assets with good fundamentals and the potential to add value through active asset management initiatives, with a focus on improving sustainability credentials. Compared to other major cities, Manchester, which is one of the company’s high-conviction locations, currently has the lowest office vacancy rate, and we expect relatively higher growth in office rents over the next five years.”
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