M&G acquires €382m of Manchester office space

UK asset manager M&G Real Estate is acquiring 46,000 m2 of prime office space leased to RBS in Manchester for a valuation in excess of £306 mln (€382 mln).

M&G, the investment arm of financial group Prudential in the UK, Europe and Asia, announced on Friday that it has exchanged contracts with administrator EY (Ernst & Young) to purchase 1 Spinningfields Square and 1 Hardman Boulevard.

1 Spinningfields Square is being acquired on behalf of an internal client fund of M&G Real Estate, while 1 Hardman Boulevard was purchased on behalf of a third-party client.

The 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 of EY were appointed joint administrators of the asset-owning companies in April 2014.

Mathieu Roland-Billecart, partner in the Ernst & Young Real Estate Corporate Finance team, said: 'We have run a global marketing campaign for the portfolio. M&G Real Estate was selected following intense competition from UK and international investors. The pricing reflects the prime nature of the portfolio and we are delighted to have worked with M&G in getting the contracts exchanged in such a swift timescale.'

The joint administrators were advised by Ernst & Young Real Estate Corporate Finance, Savills and Freshfields Bruckhaus Deringer. M&G Real Estate was advised by Jones Lang LaSalle and Hogan Lovells.