The Royal London Pension Property Fund has acquired One New York Street in Manchester from Invesco Real Estate for £55m.
The deal will bring city centre office investment volumes in Manchester for 2017 to more than £600m, according to JLL. Recent deals have set prime yields at around 4.75%.
One New York Street comprises 113,256 sq ft of accommodation split across 13 levels, in addition to two floors of basement car parking.
Its 11 occupiers include Marks & Clerk, AECOM and Turley Associates, with The Alchemist occupying a ground floor pub/restaurant unit.
James Porteous, capital markets director at JLL in Manchester, which advised Invesco, said: “It’s extremely likely that total volumes for 2017 look set to exceed last year’s total of £642m, but will be some way off the stellar year of 2014 which saw more than £1bn sold.
“There has been a definite trend this year towards off-market deals and the city attracting equity from overseas investors.”
Alasdair Munn at Ryden, which represented Royal London, said: “The property will be a positive addition to Royal London’s growing portfolio of modern, multilet offices located in the the UK’s premier cities where value can be added not only by selective asset selection but also through active asset management.”
JLL represented Invesco Real Estate; The Royal London Pension Property Fund was advised by Ryden LLP.
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