Benson Elliot, the UK-based private equity real estate fund manager, has announced the sale of 55 Princess Street in Manchester and Templeback in Bristol for net initial yields of 5.65% and 5.34% respectively.

Benson Elliot, the UK-based private equity real estate fund manager, has announced the sale of 55 Princess Street in Manchester and Templeback in Bristol for net initial yields of 5.65% and 5.34% respectively.

Princess Street was sold to Ignis UK Property Fund, managed by Standard Life Investments, for £22.4 mln (€32 mln) while Templeback was sold to Orchard Street Investment Management for £58.5 mln.

The two disposals, which have been concluded in off-market transactions, bring Benson Elliot’s total proceeds from seven UK exits during the past 12 months to over £275 mln.

Templeback is a 122,000 sq ft (11,300 m2) office development behind a retained Victorian façade, located in Bristol’s commercial area on the waterfront of the Floating Harbour canal. Since acquiring the building in October 2014, Benson Elliot has upgraded the shared areas and increased the building’s lettable area.

55 Princess Street provides 51,700 sq ft of grade A office space in Manchester’s prime business core, arranged over six floors, along with 4,100 sq ft of ground floor retail space. Since the acquisition of the building in September 2013, Benson Elliot has secured a number of lettings, bringing the building’s occupancy to 77%. The asset currently generates a passing rent of £3.3 mln per annum.

Marc Mogull, Benson Elliot Managing Partner, commented: 'We have successfully marketed a number of our mature UK regional assets in BEREP II during the past 12 months, and have also had some unsolicited approaches on our BEREP III portfolio, reflecting the strong appetite amongst investors for institutional quality properties like Templeback and Princess Street.'

Benson Elliot was supported on the asset management of both Templeback and Princess Street by Cube Real Estate. Farmer Capital advised Benson Elliot on the sale of Templeback. Orchard Street Investment Management was advised by Savills and Standard Life Investments was advised by JLL.