Rockspring acquires mixed-use asset in Manchester

Rockspring Property Investment Managers has acquired Peter House in Manchester for £23.7 mln (€28 mln), reflecting a net initial yield of around 6%.

The acquisition was carried out on behalf of Rockspring's UK Value 2 fund.

Rockspring bought Peter House, a landmark city centre office in Manchester’s business district, from Mayer Real Estate. The property comprises 94,650 sq ft (8,800 m2) of office and ground floor retail and leisure space, as well as 39 underground parking spaces.

The building is currently 100% let with serviced office provider Regus occupying 82,254 sq ft.

The transaction follows the acquisitions of Bramley Shopping Centre in Leeds; Guildhall, an office and retail investment in Glasgow; and Maskew Retail Park in Peterborough, bringing the total number of assets in the fund to four, with an aggregate value of £108 mln.

Rockspring launched UK Value 2 earlier this year and, at third close, the fund has achieved 60% of its £300 mln target equity raise. The vehicle is scheduled to complete its final close at the end of this year, with a portfolio target of over £600 mln.

King Street Commercial acted on behalf of Rockspring with WHR representing Mayer Real Estate.