RLAM set for Manchester trophy buy

By Paul Norman - Friday, January 05, 2018 15:00

Main news image
Royal London Asset Management has exchanged to buy 3 Hardman Square in Manchester from M&G Real Estate for circa £107m, a sub 5% yield, CoStar News understands.

The transaction was first tipped by Place North West at the end of last year.

M&G Real Estate bought the long leasehold interest in the Fosters & Partners-designed 182,979 sq ft office from Credit Suisse Group in 2015 for £91.733m, reflecting a net initial yield of 5.79%.

The property is let to tenants including Worldpay, TLT solicitors, Michael Page, i2 and Towergate.

CoStar News revealed at the end of last year that Royal London Asset Management is also set to buy 5 St Philips Place in the centre of Birmingham from Savills Investment Management for circa £47m or a 4.7% yield.

In Manchester CBRE is advising Royal London while M&G is being advised by Knight Frank.

Jamie Campbell, CoStar Market Analyst, said: "Investor demand for Manchester office assets remains keen, fuelled by the continued improvement in office occupier fundamentals and the prospects of further rental growth. The pending sale of 3 Hardman Square is the latest in a handful of notable recent deals, with Royal London Asset Management also acquiring One New York Street for £55m as well as the sale of No.1 Spinningfields to Schroder Real Estate for £200m - one of the biggest single-asset trades ever recorded in the region."


Get in Touch
+44 203 205 4600