M&G Real Estate has exchanged contracts to purchase the 500,000 sq ft Manchester office space let to RBS for around £320m.
The purchase of 1 Spinningfields Square was made on behalf of an internal client fund of M&G Real Estate; 1 Hardman Boulevard was purchased on behalf of a third party institutional client of M&G Investments.
The two grade-A offices are leased in their entirety to RBS for a further 23 years and are subject to annual fixed uplifts of 3%. Ben Cairns, Craig Lewis and Alan Bloom were appointed joint administrators of the asset-owning companies in April 2014.
The joint administrators were advised by EY Real Estate Corporate Finance, Savills and Freshfields Bruckhaus Deringer. M&G Real Estate was advised by JLL and Hogan Lovells.
The 350,000 sq ft 1 Hardman Square and 150,000 sq ft 1 Spinningfields Square were owned by four SPVs and were let to the bank in 2004, in one of the largest regional prelets in years.
RBS has also this week put up for sale an £88m portfolio of regional assets.
Estates Gazette’s North West Focus features a case study on the background to the deal.
chris.berkin@estatesgazette.com
