Peel L&P puts Harbour City on the market for £40m

Peel L&P has appointed CBRE to seek a buyer for Harbour City, its multi-let office scheme in Salford Quays, Greater Manchester. Offers are sought in excess of £40.3m, reflecting a net initial yield of 10%. The scheme spans two grade-A office buildings, measuring a combined 182,000 sq ft, and a car park. One of the offices is known as The Vic, spanning across 123,148 sq ft and benefiting from a recent £9m refurbishment programme. CBRE noted that additional renovation works to further enhance and futureproof the asset could drive the rent towards £25 per sq ft from the current low base of £17 per sq ft. The other office tower on the scheme is called The Alex, totalling 58,944 sq ft. The scheme sits within walking distance of MediaCity and over the past two years it has become a home to Bupa, M&S, RAC, Tech Mahindra and the Department for Work and Pensions. A spokesperson for Peel L&P said: “The sale of these buildings presents a fantastic opportunity for an investor and will enable us to support future investment into regeneration projects, creating further jobs and opportunities.” Mike Pochin, CBRE Investment Properties team director in Manchester, added: “Salford Quays is a submarket that outperforms established regional city centre markets in Liverpool, Sheffield and Newcastle. “As an office market, it is under-supplied, with many older buildings repurposed for residential use, and new-build development is challenging against a backdrop of build cost inflation, increased financing costs and higher cap rates. “Harbour City is, therefore, well positioned to be market leading throughout the next cycle.” See occupational sales comparables for Greater Manchester>> To send feedback, e-mail evelina.grecenko@eg.co.uk or tweet @Gre_Eve or @EGPropertyNews Photo © CBRE