Mayer offloads Peter House for £23m

Rockspring Property Investment Managers has bought the 95,000 sq ft block in St Peter's Square for £23.7m, in an off-market deal reflecting a net initial yield of sub-6%.

Rockspring purchased Peter House in Manchester from Mayer Real Estate on behalf of the Rockspring UK Value 2 LP fund.

WHR Property Consultants acted on behalf of Mayer. WHR previously advised on Mayer's acquisition of Peter House in 2011 for £14.7m. The sale to Rockspring represents a 60% premium.

Peter House in St Peter's Square is made up of offices and ground floor retail and leisure space, with 39 underground parking spaces. The offices are fully let to serviced office provider Regus, which occupies the 10 upper floors of the building totalling 82,254 sq ft. The ground floor is let to a number of leisure operators including Don Giovanni, Giorgio One, Papa John's, Terence Paul Hairdressing and Simply News.

Ehud Michman, head of UK operations at Mayer Real Estate, said: "When we originally purchased Peter House, we recognised the future potential of the location, which was to benefit from significant investment including the refurbishment of the Town Hall, the improved public realm works and proposed new office developments. This potential is now being realised as the works to St Peter's Square are completing and it is firmly establishing itself as the leading new business destination for the city."

Dan Crossley, partner of WHR, said: "Although MRE had no plans to dispose of Peter House, which it had successfully asset managed over the last three years, the attractive off-market approach by Rockspring was well timed and will enable MRE to focus on new opportunities."

King Street Commercial acted on behalf of Rockspring.