International real estate investment firm Hines and German investor Universal-Investment have acquired Manchester's Royal Exchange for an undisclosed sum.
The 700-seat theatre venue, which also incorporates 81,000 ft2 of retail and leisure space and 121,000 ft2 of office space, was purchased from Trinistar Manchester, a joint venture between Starwood Capital Group and Trinity IM.
'Royal Exchange represents a rare off-market opportunity to acquire a prime mixed-use asset in an excellent location in the city centre. We look forward to working with our leasing agents Savills and Canning O'Neil to lease the remaining office space,' said Anthony Leonard, managing director, Hines UK.
The acquisition was made for an institutional real estate fund on the platform of Universal-Investment, administered and managed on behalf of Bayerische Versorgungskammer (BVK), Germany's largest pension scheme group, with approximately €62 bn assets under management. This deal is part of its €1.3 bn investment mandate from BVK which is targeting prime high-street retail assets across Europe.
'Following the recent upgrade of the building's façade and the extensive remodeling of the Royal Exchange Arcade, we will continue to reposition the retail space to provide a high quality and niche retail environment to compliment the wider Manchester retail offer,' commented Sharon Bloodworth, Hines' director of Retail Asset Management.
The property represents the second acquisition in the UK for the BVK European high-street retail account, following the acquisition of a prime retail asset on Glasgow's prime shopping street earlier this year.
This transaction is the sixth acquisition by Hines and Universal-Investment for the BVK mandate which has also purchased two assets in Milan, and further prime high-street retail assets in Oslo, Glasgow and Paris.
'German institutional investors are strongly increasing their real asset portfolios. Retail properties are an essential part of these portfolios as they deliver steady returns and provide good diversification,' said Alexander Tannenbaum, managing director of Universal-Investment.
Bilfinger GVA advised Hines, MMX and Commercial Properties acted for Starwood and Trinity IM.
