AM alpha acquires 196 Deansgate 

The German investor, which also owns Manchester’s 300,000 sq ft Rylands building, has bought the grade two-listed property from Commercial Estate Group on behalf of a pension fund manager from Hamburg.

The £20m to £25m AM alpha is understood to have paid for the 63,000 sq ft 196 Deansgate is less than the original asking price of £30m sought by CEG when the building was put up for sale last year.

“This transaction shows again that AM alpha is an expert in executing complex investments,” said Martin Lemke managing director of AM alpha.

“We will continue to grow our portfolio in the UK’s dynamic growth regions.”

196 Deansgate is AM alpha’s second Manchester office building. The investor is also in the process of redeveloping the city’s former Debenhams into an office scheme.

As well as its two Manchester assets, AM alpha also owns 76 Sir John Rogerson’s Quay in Dublin and 21 Great Winchester Street in London.

“As an independent family office, AM alpha can invest anti-cyclically,” Lemke added.

“We are specialised in finding imbalances in the market and turning them into opportunities to achieve above-average returns for our investors, especially in a challenging market environment.”

AM alpha was advised on the 196 Deansgate transaction by Cushman & Wakefield. CEG was advised by Edwards & Co and Savills.

The six-storey Manchester property is almost fully let and located on the corner of Deansgate and Quay Street.

Offices within the building are let to occupiers including Retail Merchant Services and McCann Connected. Ground floor leisure tenants include Pieminister, Manahatta, and Federal.