Manchester city centre office building sold for £16m

Acting on behalf of IVG, CBRE’s Manchester Capital Markets team collaborated with OBI Property in the sale of 35 Fountain Street in Manchester City Centre to CBREGI for £16.1m.

The purchase, in which CBREGI was represented by Whitaker Horton, reflected a Net Initial Yield of 5.50%.

After undergoing a significant refurbishment to create a headquarter office building totalling 50,652 sq ft, 35 Fountain Street is now offering the best tenant amenity in the city centre.

The premises comprises a new fully glazed entrance frontage and reception, modern tenant hub, 110 cycle racks and fully refurbished office space.

Travel Jigsaw has recently acquired a lease over five of the six available floors at rents ranging from £19.50 to £22.50 psf by way of a five year lease, with one available floor remaining.

The building occupies a key location within the city centre, just off Market Street and King Street, close to Piccadilly train station and the Mosley Street Metro Link Station. Occupiers benefit from a range of surrounding retail, restaurant and leisure options in addition to the broad range of on-site facilities.

Will Kennon, director for Capital Markets at CBRE’s Manchester office, said: “We are delighted to have successfully represented IVG in securing the initial 40,000 sq ft letting to Travel Jigsaw and then executing the investment sale to CBREGI following an off market approach. The sale signifies continued strong investor appetite for well positioned Manchester CBD office investments offering strong rental growth prospects.”

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