Helical Bar, an investor-developer mainly focused on London, is purchasing an office complex in Manchester.
Helical Bar, an investor-developer mainly focused on London, is purchasing an office complex in Manchester.
In an off-market transaction, Helical Bar exchanged contracts to acquire Churchgate House and Lee House, two interlinked office buildings. The investment volume of £34 mln (€41 mln) reflects a net initial yield of 5.7%.
Helical Bar said the transaction would be funded through a combination of cash and existing undrawn debt facilities.
The vendor is a joint venture between Angelo Gordon and Dunedin Property.
The Grade II listed Churchgate House and Lee House are located on Oxford Street, part of Manchester's central business area and provide 250,000 sq ft (23,226 m2) of multi-let office accommodation, at rents between £14.00 and £17.50 per sq ft.
A number of tenants extended their leases over the last 18 months, however, there is currently 35% vacant, which Helical said provided opportunities to improve income through letting up space.
