CBRE Global Investors has completed two acquisitions in Manchester city centre on behalf of separate account clients.
The transactions are part of a wider active management strategy adopted by CBRE Global Investors which is focused on diversifying in to good quality assets outside London.
The fund management company has acquired the following:
· Mixed use hotel and leisure building, The Circus, covering 140,490 sq ft and costing GBP24.45m, is located in the heart of Manchester on Oxford Street and Portland Street. The acquisition will yield 5.7 per cent p.a. The 2001 development is anchored by a Premier Inn hotel adjacent to St Peter’s Square – an area undergoing significant regeneration. The property contains a hotel, casino and four retail/ leisure units that are currently let to tenants including Whitbread, JD Wetherspoon and Boots UK.
Parkdales acted for CBRE Global Investors and CBRE for the seller.
· Tower 12, bought for GBP23.075m, is a 69,503 sq ft mixed use property occupying a prime position forming the northern access point to Spinningfields. The property was redeveloped in 2012 and provides leisure accommodation over ground, first, second and top floors with seven floors of Grade A office accommodation and two retail outlets let to Costa and Waitrose. The leisure element is let to four successful, independent operators and the offices multi-let to 11 tenants. Spinningfields consists of 4.6m sq ft of mixed use accommodation and forms an important extension to the west of Manchester’s CBD. The asset is a core hold for the Client, offering a diversified income stream with strong prospects for rental growth.
CBRE acted for CBRE Global Investors and OBI for the seller.
Both investments reflect the attractive prospects Manchester offers as the third largest urban area in the UK with a population of 2.6 million people. The Manchester city centre region contributes 5.1 per cent of the North West’s total economic output and 5 per cent of the UK total. Sixty five of FTSE 100 companies are now represented in the area.
Michael Ness, head of UK, CBRE Global Investors, says: “Manchester has experienced significant investment over the last 10 years and presents strong growth opportunities. These transactions reflect CBRE Global Investors’ active investment management strategy in good quality assets outside London.”