“An iconic city centre office block has been sold for nearly £60m.
Chancery Place, which looks onto Brown Street, Manchester, has been bought by NFU Mutual.
The 15-storey glass tower was built in 2008 on an ‘island site’ in the Upper King Street conservation area.
Its tenants include Kyocera, Clyde & Co, i2, HSB Engineering, Clearwater Finance, Travelers Insurance and QBE Management Services.
The building has been sold by Alanis Capital, with a net initial yield of 5.05 per cent.
CBRE and Wragge Lawrence Graham represented NFU Mutual, with JLL and Jones Day acting for Alanis.
Will Kennon, director of capital markets at CBRE Manchester, said: “Chancery Place represents the first evidence of a ‘super prime’ asset being traded in the current investment cycle.
“The building is a stunning trophy asset providing best in class office accommodation within Manchester’s historic core business district providing an exemplary tenancy line up.
“There is opportunity to draw upon the rental growth being evidenced across the Manchester occupational market and we are delighted to have secured the acquisition on behalf of NFU Mutual.”
James Porteous, director of capital markets at JLL Manchester, said; “Our client had created an outstanding building which has attracted a lot of interest from both UK and International investors.
“We are delighted with the outcome of this sale which demonstrates the demand for exposure to the regional office markets and Manchester in particular.”
– Manchester Evening News Article – Adam Jupp
(Full article available here)