German fund manager Union Investment has bought Allied London’s XYZ Building in Manchester for around £85m – a net initial yield of 4.8%.
The Hamburg-based real estate investment manager has exchanged contracts to buy the 167,000 sq ft office building in Spinningfields.
The eight-storey building, currently under construction, was launched to the occupier market last May and was close to fully let by August.
Tenants due to move in when the building opens in October include the National Computing Centre, law firm Shoosmiths and radio broadcaster Global.
It is understood that around 30,000 sq ft of the building will be reserved by Allied London for its Hello Work event and hot-desking workspace.
Farmer Capital acted for Allied London; Savills represented Union.
All parties declined to comment.
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