£45m knocked off asking price for One Angel Square
Offers of £165m are now being sought for the distinctive Manchester office building 12 months after it hit the market for £210m.
The revised asking price, while £45m lower than this time last year, is still almost £20m more than the current owners paid for the 330,000 sq ft office in 2013.
Located at the heart of Manchester’s NOMA district, the Grade A building is owned by a special purpose vehicle created by RREEF Investment GmbH, part of Deutsche Bank, and Bedell Corporate Trustees, a Jersey Property Unit Trust.
The SPV purchased the building’s freehold from Co-op for £142m 10 years ago.
CBRE has once again been instructed to sell the 330,000 sq ft building.
Will Kennon, executive director at CBRE, said: “This headquarters office investment and landmark asset offers a highly attractive income profile with 15 years unexpired and indexed RPI-based rent reviews, guaranteeing strong income performance during the remaining lease term.
“NOMA is one of Manchester’s most exciting ESG-focused business districts and One Angel Square commands a prime central position within the overall estate. The building itself offers strong ESG credentials including BREEAM Outstanding.”
A sale at the revised asking price would reflect a net initial yield of 7%.
One Angel Square is 15 storeys tall, not including its basement. It is capable of subdividing each of its floors to create suites from 3,000 sq ft to 29,000 sq ft in size.
Amenities include south-facing roof terraces and an auditorium. The building also boasts a coffee shop, gym, fitness studio, restaurant, and onsite convenience store.
Designed by 3DReid, the building boasts an Outstanding BREEAM rating and an A+ Energy Performance Certificate.
Built in 2012, One Angel Square also has 146 car parking spaces and 105 spaces for cycle storage. There are also EV charging points on site.
It is under a single FRI lease to The Co-op for 25 years, with the deal expiring in February 2038. In December 2021, the Co-op revealed its intention to sublet 74,000 sq ft in the building, recruiting Avison Young to market the space.
Topped-up rent in the building is £11.6m a year and is forecasted to rise to £12.3m a year after a five-year review this year.
Thought the co-operative group is based in that building? They relocating?
By Development
Hi Development. See this line from the story – “It is under a single FRI lease to The Co-op for 25 years, with the deal expiring in February 2038”. Cheers, Dan.
By Dan Whelan
Co-op hardly use any of the space anymore because employees were given the option to work from home
By CR
Possibly the worst time in the last 10 years to sell this building. Dropping the price stinks of desperation. Coupled with the slowdown in development activity, the market is in for some challenging times over the second half of this year
By Anonymous