Noé Group property firm Capreon has sold the Rylands Building in Manchester to AM Alpha, a German real estate family office acting on behalf of its value-add vehicle.
The 470,000 sq ft grade II listed Debenhams department store on Market Street in Manchester was sold for £87m.
The price reflects a net initial yield of 5%, and a capital value of approximately £185 per sq ft.
The building is let in its entirety to Debenhams on a lease extending to 2039.
The seven-storey art deco property was originally built by the Rylands textiles company founded by John Rylands.
The deal is the first significant transaction for Capreon since it was formed by the Noé Group following the split from BMO Real Estate Partners.
It is AM Alpha’s second purchase in Manchester after it bought the Zenith Building earlier this year.
AM Alpha was advised by Müller International and Pinsent Masons; Capreon was advised by CBRE and CMS.
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