Member Article

American trust snaps up Salford office block

WP Carey, a US based real estate investment trust, has bought an office building in Manchester leased to the Department for Communities and Local Government.

The total acquisition cost of Trinity Bridge House in Dearmans Place, Salford was £40m, and took the form of a sale and leaseback deal that will yield “significant” income for the government.

The building was previously owned by the Department for Communities and Local Government, which retains a 15 year lease. Currently, 2,000 civil servants working for HM Revenue & Customs are based there.

WP Carey was founded in 1973 in America and has offices in London and Amsterdam. It specialises in sale and leasebacks, buying properties from owner-occupiers who remain tenants after the sale.

The firm said: “Manchester is the UK’s third largest city, with the most active office market outside of London.

“The facility is located in Salford, situated to the west of Manchester city centre in a key regeneration area.

“The ongoing redevelopment in the area is expected to increase the attractiveness of the location and have a positive impact on the local real estate market.”

Trinity Bridge House, on Dearmans Place, near the Lowry Hotel, is a 211,000 sq ft office block, with 183 parking spaces.

It was built in 1997 and has been renovated since then.

Jennifer Lucas, director of W P Carey, said: “The transaction demonstrates WP Carey’s ability to source and complete attractive deals in key European markets.

“The UK is the second largest European economy and has a AAA-rating. Together with a government lessee, we believe we have secured a strong, long-term covenant.

“The recent staff consolidation into the facility demonstrates that this is an important location for HMRC, and supports our proven business model of acquiring key operating assets let to single tenants on long-term, net-leases.”

This was posted in Bdaily's Members' News section by Simon Malia .