Manchester office hits market with £9.5m price tag
Having acquired the 60,000 sq ft One Portland Street for just shy of £21m in late 2017, M&G is now looking to offload the asset.
CBRE has been appointed to find a buyer for the Manchester office building. Bids in excess of £9.5m are sought.
One Portland Street, which is 60% let, is billed as a value-add opportunity.
It is home to the Hungarian Embassy, Portuguese Consulate, and ADP Architecture and has a weighted average unexpired lease term of 3.4 years. The ground floor retail space is let to Costa Coffee, Players, and Tesco.
M&G bought the building from LGIM in 2017, paying above the £20m guide price.
Seven years on, a sale at guide price would reflect a net initial yield of 11.8%
M&G is an active player in the Manchester investment market both in terms of acquisitions and disposals. In 2022 the firm acquired the 104,000 sq ft 58 Mosley Street for £49m and is looking to sell 101 Embankment for around £80m.
M&G also sold The Astley, a stabilised BTR asset on Great Ancoats Street, to Grainger for £31m earlier this year.
Stop the comments for this one
By Anonymous
It’s gonna be interesting to see how much the asset sells for. I’m predicting ~12m.
By Richard
Wow. The office market is an absolute disaster. 12% yields is crazy.
By Mr Manchester
My bets are on this going for £8m
By J
Seems like the office investment market is on its knees! M&G will likely have big losses on other assets in the city, to follow this one. Their original strategy / report would be an interesting browse!
By Noel