M&G Real Estate has confirmed the purchase of an office building in the northwest UK city of Manchester for £91.7 mln (€118 mln) from Credit Suisse Asset Management.
M&G Real Estate has confirmed the purchase of an office building in the northwest UK city of Manchester for £91.7 mln (€118 mln) from Credit Suisse Asset Management.
The deal reflects a net initial yield of 5.8%.
It comes shortly after the end of a year during which M&G Real Estate bought and sold around £4 bn of property in the UK, Europe and Asia, bringing total transactions for the last two years to £7.3 bn.
Alex Jeffrey, CEO of M&G Real Estate, said: ‘Our first purchase of 2015 in Manchester reflects our ongoing strategy to reposition our portfolios adding more quality stock.’
The acquisition of the property, located at 3 Hardman Square in the Spinningfields area of Manchester, was made on behalf of M&G Property Portfolio, managed by Fiona Rowley and Justin Upton.
Developed in 2007 and designed by Foster & Partners, the asset comprises 178,508 sq ft (16,500 m2) of Grade A office space and is located west of Deansgate. The acquisition follows the purchase of 1 Spinningfields Square - a 500,000 sq ft prime office scheme – which M&G Real Estate acquired in June 2014 in one of the largest-ever regional office deals in the UK. 3 Hardman Square is multi-let to World Pay, Towergate, Michael Page, i2 Office and TLT.
Lewis Ellis acted for M&G Real Estate. Credit Suisse Asset Management was represented by Knight Frank.
